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As a rule of thumb,the Poisson distribution can be used to approximate a binomial distribution when n ≥ 20 and π ≤ 0.05.
Investment's Cash Flows
The cash that is generated or expended over the course of an investment's life.
Real Options
An approach in finance where choices are treated as derivative securities that managers can use to maximise returns while deferring investment decisions.
Expected NPV
An estimation of the Net Present Value of a project or investment, considering the potential outcomes and their probabilities.
Obligation
A legal or financial duty or commitment one party owes to another, often in the form of debts or contractual agreements.
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