Examlex
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Present Value
The current worth of a future sum of money or stream of cash flows given a specified rate of return, taking into account the time value of money.
Average Rate of Return
A financial ratio that represents the expected annual earnings of an investment as a percentage of its initial cost.
Average Investment
The sum of the initial investment and the value at the end of the investment period divided by two, often used in calculating returns.
Straight-Line Depreciation
A method of allocating the cost of a tangible asset over its useful life evenly.
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