PROPRIETARY Definition

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PROPRIETARY is an account, item, or information belonging to a company or individual. See PROPRIETARY ASSET.

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MODIFIED INTERNAL RATE OF RETURN is the rate of return which equates the initial investment with the terminal value, where the terminal value is the future value of the cash inflows compounded at the required rate of return (the opportunity cost of capital).

ECONOMIC PROFITS is the difference between the total revenue and the total opportunity costs.

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