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Explain the concept of the "idea gap" in development economics.
Probability
The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.
Capital Budgeting
The process by which a business evaluates and selects long-term investments that are expected to yield returns over a period of time.
Risk Character
A term describing the unique attributes and level of risk associated with an investment or financial decision.
Abandonment Option
The abandonment option is a right, but not the obligation, to abandon an investment or project if it becomes unprofitable or risks exceed anticipated benefits.
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