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Figure 3-1
-Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family,
Net Present Value
A calculation used to assess the profitability of an investment or project by summing the present values of all cash inflows and outflows associated with it.
Equity-Financed
A term describing a business that is funded through the sale of equity or shares to investors, rather than through borrowing or debt.
Price Per Share
The amount of money that one share of a company's stock is worth at a given time, reflecting what investors are willing to pay for a piece of the company.
Incremental Value
The additional value created by undertaking a particular action or project, calculated by comparing the difference in an entity's value with and without the action.
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