Examlex
Which of the following statements is incorrect?
Present Value Factor
A numerical figure used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.
Capital Expenditure
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.
Annual Cash Flows
The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.
Net Present Value Method
A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.
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