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What are the three steps of overhead application?
Net Present Value
The difference between the present value of cash inflows and outflows over a period, used to analyze the profitability of an investment.
Projected Annual Cash Inflow
An estimate of the total money expected to be received by a company over a year from its operational activities.
Net Present Value
Net present value (NPV) is a financial calculation used to assess the profitability of an investment or project, by discounting all expected future cash flows to their present value using a specific discount rate.
Payback Period
The time it takes for an investment to generate enough cash flow to recover its initial cost, used in capital budgeting to evaluate investment efficiency.
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