'Economic profit' is analogous to ____ in capital budgeting.

Name: 'Economic profit' is analogous to ____ in capital budgeting.
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Question

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Economic profit measures the difference between revenue and both explicit and implicit costs, while net present value measures the difference between expected cash inflows and outflows in capital budgeting. Both concepts are concerned with determining profitability, making net present value the most analogous choice.

'Economic Profit' Is Analogous to ____ in Capital Budgeting