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Profitability Index
A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
Cash Inflows
Money received by a business from its operational, financing, or investment activities.
Investment Projects
Initiatives undertaken by a business or organization to invest in new assets, technology, or resources with the expectation of generating future benefits.
Total-Cost Approach
A pricing strategy that considers all costs associated with producing and delivering a product or service to determine its selling price.
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