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When computing the NPV of a project, it is important to consistently use either nominal dollars and nominal rates or real dollars and real rates.
Depreciation Expense
The allocated cost of an asset over its useful life as an expense in accounting.
Accumulated Depreciation
The total amount of a tangible asset's cost that has been depreciated over the time it has been in use.
Productive Assets
Assets that contribute directly to the revenue-generating activities of a business.
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