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The following steps should be used to secure an operating system:
Required Return
The minimum return an investor expects to achieve by investing in a particular asset or project.
Operating Cash Flow
The amount of cash generated by a company’s normal business operations, indicating whether a company is able to generate sufficient positive cash flow.
Top-Down Approach
An investment strategy that begins with analyzing macroeconomic factors, then drilling down to the industries and finally individual companies to make investment decisions.
Net Initial Investment
The total upfront cost required to initiate an investment, including all relevant expenses minus any cash inflows.
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