Examlex
Match the terms with their definitions.
-Bruit
DCF Model
DCF Model, or Discounted Cash Flow Model, is a valuation method used to estimate the value of an investment based on its expected future cash flows.
Risk Premium
The extra return expected by investors for taking on additional risk above the risk-free rate.
Cost of Capital
The minimum return needed for a capital investment project, like constructing a new manufacturing facility, to be considered viable.
Risky Projects
Investments or projects that carry a high level of uncertainty regarding their future returns.
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