Examlex
Outline and describe the basics of the equity method.
Payback Period
The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.
Discount Rate
The interest rate used to determine the present value of future cash flows, guiding investment and financing decisions by reflecting the opportunity cost of capital.
NPV
An abbreviation for Net Present Value, it assesses the worth of future cash flows in today's dollars, subtracting the initial investment.
PI
A mathematical constant representing the ratio of a circle's circumference to its diameter, approximately 3.14159.
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