AGI Definition

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AGI (Annual Gross Income) is annualized total income prior to exclusions and deductions.

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NET PRESENT VALUE (NPV) is a method used in evaluating investments, whereby the net present value of all cash outflows (such as the cost of the investment) and cash inflows (returns) is calculated using a given discount rate, usually REQUIRED RATE OF RETURN. An investment is acceptable if the NPV is positive. In capital budgeting, the discount rate used is called the HURDLE RATE and is usually equal to the INCREMENTAL COST OF CAPITAL.

EXIT STRATEGY codifies and gives a business owner or investor a way to reduce or liquidate his/her stake in a business and, if the business is successful, make a substantial profit.

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