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Posts Tagged ‘valuation’

What Is Capital Budgeting?

what is capital budgeting

Capital budgeting is a process that helps determine whether a firm should invest in something or not. When businesses want to buy new long term assets such as new machinery or start a new project, it is imperative to consider if it would be worth it or not.

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What Is Present Value?

what is present value

The present value is the current value of future cash flows at a specific rate of return. The present value indicates that an amount of money today has a higher value than that same amount in the future.

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