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Awards, frequent flyer points, and college degrees are examples of primary reinforcers.
Net Present Value
A financial metric that calculates the present value of all future cash flows (both inflows and outflows) of an investment, discounted back at a specific rate.
Rate of Return
The profit or deficit achieved from an investment during a certain timeframe, represented as a proportion of the investment's initial outlay.
Present Value Factors
Numerical factors used to calculate the present value of future cash flows by accounting for the time value of money.
Internal Rate of Return
A financial metric used to evaluate the profitability of potential investments by calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.
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