Examlex
__________ are simplified views of reality that attempt to explain real-world phenomena.
Time Value
The principle that current money holds greater value than an identical sum in the future because of its earning potential.
Net Present Value Method
A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the present value of expected future cash flows.
Net Present Value
A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.
Rate of Return
This is a measure of the profitability of an investment, calculated as a percentage of the original investment.
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