RESPONSIBILITY CENTER Definition

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RESPONSIBILITY CENTER is a subunit in an organization whose manager is held accountable for specified financial results of its activities.

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PENDING usually refers to either: 1. Not yet decided; or, 2. Being in continuance.

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.

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