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Additions to land that increase the usefulness of the land such as parking lots, fences, and lighting are not depreciated.
Independent Project
A project whose acceptance or rejection does not directly affect the decision to undertake other projects.
Conventional Cash Flows
Conventional Cash Flows refer to a pattern of cash flows where an initial investment is followed by a series of positive cash inflows, typical of most investment projects.
Net Present Value
A financial metric that calculates the present value of all cash inflows and outflows associated with an investment, considering the time value of money.
Capital Budgeting
The process by which investors determine the value of potential investments or projects by assessing the cash inflows and outflows associated with them.
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