Amount due to suppliers of a business.

Also termed the profitability index. Investment NPV divided by its initial cost.

Refer: barter. Exchanging goods with other goods instead of cash.

Return required on capital budgeting project. Percentage cost of funds used to finance the assets.

Refer: Net financing cost. Costs paid to hold an investment position.

Effective rate paid by a company on current debt as evaluated by pre – or post-tax returns.

Rate of interest pertaining to funds borrowed.

Internal rate of return on a lease.

Refer : Correlation Coefficient. Statistical measure.

Standard measure used in statistics to evaluate the relation between two random variables. Formula covariance divided by the variables’ standard deviations.