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Discount Rate
The interest rate used to discount future cash flows to their present value, often used in capital budgeting and investment planning.
Original Investment
The initial amount of money used to purchase an asset or start an investment.
Cash Inflows
Money received by a business from its operations, financing, or investing activities.
Net Present Value
The divergence of cash inflows’ current worth from cash outflows’ present value during a defined duration.
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