Examlex
A complication of the approach to decision making is that measuring and comparing the values of certain benefits and costs is often difficult, if not impossible.
Initial Investment
The amount of money used to start a project, purchase assets, or invest in securities, which is used as a basis for evaluating the potential profitability of the investment.
Discounting
A financial technique that calculates the present value of future cash flows by applying a discount rate.
Net Present Value
A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Cash Flows
Cash flows represent the movement of money into and out of a business, indicating its liquidity and financial health.
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