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Productivity Is Measured as Output Per Unit of Productive Input

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Productivity is measured as output per unit of productive input.


Definitions:

Annual Net Cash Inflows

The total amount of cash received minus cash expenses over a year.

Net Present Value

The discrepancy in the present valuation of incoming and outgoing cash flows within a certain timeframe.

Useful Life

The estimated duration of time a fixed asset is considered to be productive for its intended use.

Working Capital

is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

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