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Financial terms in "Business and Management"

1. Pareto Principle

2. finder's fee

3. Unlimited Liability

4. officer

5. Ad hoc

6. Handle

7. Bottom Fishing

8. Depositary

9. Dispatch Note

10. Trade Secret

11. Chartered Business Valuator (CBV)

12. consumer goods marketing

13. Off-the-Peg

14. consumption

15. Spot Check

16. Office Of Fair Trading

17. Casting Vote

18. The Daily Official List

19. Target Audience

20. Thrift 

21. Third World

22. Tax Bracket

23. Legal Tender

24. Benefits Realisation

25. Keyword Advertising

26. Puff

27. Dolly

28. price rigging

29. Gratis

30. Warren Buffett

31. Positioning

32. Balance Sheet

33. Sexting

34. incremental cost

35. Brand

36. Haggle

37. External Equity

38. Sale And Leaseback

39. Income Tax

40. fail-safe

41. factory

42. severance pay

43. Backscratching

44. Output Tax

45. Covenant

46. Line Authority

47. Ticker Symbol

48. Scab

49. taxable spinoff

50. Mouse Potato

51. heads of agreement

52. salvage value

53. Credit Repair

54. org chart

55. concession

56. Credit Analysis

57. Non-Departmental Public Body

58. primary industry

59. consumer services marketing

60. phoenix company

61. Adjustment Index

62. fact book

63. Performance-Related Pay

64. organizational chart

65. 8(a) firm

66. Username

67. quality cost

68. quality control

69. (in) Lieu

70. Troubleshoot

71. risk manager

72. launder

73. cost driver

74. Russell 2500 Index

75. solvency margin

76. Local Content Measure 

77. Open Account

78. Bonded Warehouse

79. Pari passu

80. Limited partnership

81. Virtual Memory

82. Purchasing Power

83. Objects Clause

84. Retainer

85. feasible

86. NM

87. Incorporation

88. nonaccountable plan

89. Probity

90. hockey stick

91. conflict of interest

92. Bloatware

93. Random Sample

94. negligible

95. Monopsony

96. Tort

97. Grandfather Clause

98. Overtime

99. Six Sigma

100. forwarding agent

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Featured term of the day

Definition / Meaning of

Dollar-weighted Rate Of Return

Categories: Accounting, Investing and Trading,

The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity; in other words, the rate of return at which the net present value of the project is zero. If the internal rate of return exceeds the cost of financing the project, then the project is viable. The internal rate of return is also useful in ranking competing investment projects (the higher the internal rate of return, the better the project is), but there are some limitations with this technique. First, if cash flows change from negative or positive, or vice versa, a unique internal rate of return cannot be calculated, Second, in the case that competing projects are being considered, the internal rate of return criteria sometimes gives a different ranking than the net present value criteria. Thus, net present value is usually preferred over internal rate of return, since net present value is a specific number and is usually easier to calculate. also called dollar-weighted rate of return.

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