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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.
Independent
Free from outside control or not depending on another's authority or subject to another's influence.
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