Examlex
Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the most correct term.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project, reflecting the present value of all future cash flows minus initial investments.
Internal Rate
Often synonymous with "Internal Rate of Return," referring to the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
Capital Expenditure
Capital deployed by a corporation to buy, improve, and upkeep tangible assets like land, factories, or machinery.
NPV
Net Present Value, a calculation used to determine the present value of a series of future cash flows minus the initial investment, utilized in capital budgeting to assess the profitability of an investment.
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