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Which way are the plates moving in this figure?
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the organization's goal of wealth maximization.
Net Present Value
A financial metric used to evaluate the profitability of an investment, calculated by discounting all expected future cash flows to their present value using a specific discount rate.
Annual Rate of Return Technique
A method of evaluating investments by calculating the expected annual rate of profit or loss.
Annual Cash Inflows
The total amount of money received by a company or individual within a year from various sources.
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