COST OF CAPITAL/FUNDS Definition

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COST OF CAPITAL/FUNDS is the rate of return that a business could earn if it so chose other investments with the equivalent risks. Also can be stated as opportunity cost of the funds used due to the investment decision.

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ACTUARIAL SCIENCE applies mathematical and statistical methods to finance and insurance, particularly to the assessment of risk. Actuaries are professionals who are qualified in this field.

DEPRECIATION REVERSAL is the reversal of a depreciaton amount in the depreciation reserve account.

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