AFUDC Definition

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AFUDC is Accumulated Funds Used During Construction or Allowance for Funds Used During Construction.

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SHORT TERM INVESTMENTS are fixed income investments that mature in less than one year.

INTERNAL RATE OF RETURN (IRR) is the discount rate that makes the project have a zero Net Present Value (NPV). IRR is an alternative method of evaluating investments without estimating the discount rate. IRR takes into account the time value of money by considering the cash flows over the lifetime of a project. The IRR and NPV concepts are related but they are not equivalent.

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