Discuss the Two Main Forms of FDI

question 57

Essay

Discuss the two main forms of FDI.

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Definitions:

Technologically Obsolete

A state where a product or equipment becomes outdated or no longer competitive due to advances in technology.

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The expected sale price of an asset at the end of its effective life.

Net Operating Cash Flows

The amount of cash generated by a company's normal business operations after paying operating expenses and taxes.