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The forces of demand and supply ensure that at equilibrium
Hurdle Rate
The minimum acceptable rate of return on an investment, used as a benchmark for deciding whether to pursue a project.
Internal Rate of Return
A calculation used to evaluate the profitability of potential investments.
Payback Period
The length of time it takes to recover the initial cost of an investment.
Accounting Rate of Return
A financial metric used to assess the profitability and potential return of an investment or project, based on the average annual profit compared to the initial investment cost.
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