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4 Cards in this Set
- Front
- Back
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internal rate of return (IRR)
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The discount rate that forces a project's NPV to equal zero
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sunk cost
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a cash outlay that has already been incurred and that cannot be recovered regardless of whether the project is accepted or rejected.
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opportunity cost
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the return on the best alternative use of an asset, or the highest return that will not be earned if funds are invested in a particular project.
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weighted average cost of capital
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a weighted average of the component cost of debt, preferred stock, and common equity
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