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3.8 Glossary of key terms

Unit 3.8 Glossary of key terms - Investment appraisalNote: Key terms in red text are for HL onlyKey termDefinitionAccounting rate of return (ARR)Capital expenditureCumulative net cash flowDiscount rateDiscounted cash flowInvestmentInvestment appraisalNet present value (NPV)Payback period (PBP)PrincipalQualitative investment appraisal

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