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Payback Period
The payback period is the length of time required to recover the cost of an investment.
Rate Of Return
A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.
Internal Rate
Typically refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.
Net Present Value
A calculation that determines the present value of future cash flows minus initial investment; it's used to assess the profitability of an investment.
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