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In the context of venture capital investment,discuss the consequences of venturing into an unknown territory.
Discount Rate
The interest rate used to discount future cash flows of a financial instrument back to their present value, thus reflecting the cost of capital.
Initial Cost
The upfront expense incurred to purchase an asset or start a project, including all relevant expenses.
Cash Inflows
Money coming into a business, typically from operations, financing, or investing activities; crucial for maintaining liquidity.
Earnings Before Interest And Taxes
An indicator of a company's financial performance calculated as revenue minus expenses, excluding tax and interest.
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