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Capital Budgeting:
Net Present Value (NPV): The difference between the present value of cash inflows and outflows over a period, used to assess the profitability of an investment.
Internal Rate of Return (IRR): The discount rate that makes the NPV of all cash flows from a particular project equal to zero.
Payback Period: The time it takes for an investment to generate cash flows sufficient to recover the initial outlay.
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