In the figure above,the process indicated by number 1 is _____,while the process indicated by number 2 is _____.
Definitions:
Investment
An asset or item acquired with the goal of generating income or appreciation.
Net Present Value
The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.
Investment
The allocation of resources, such as capital or time, with the expectation of achieving a future return or profit.
Net Present Value
The variance in the present value of cash entering and leaving over a specified period.
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