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Glossary
Industrial service area
The geographic area within a market that contains either an acceptable number of employees (and meets necessary labor requirements), or the necessary service and resources needed to support a given industrial activity or facility.
Initial investment
The outlay of cash needed to acquire an investment.
Input-output modeling
A mathematical approach to the description of a local or national economy, which takes explicit account of the flows and linkages within and between economic sectors. Recognizing that output (products and services) from one sector may require production inputs for other sectors, used to estimate sector- and region-specific multipliers for the purpose of analyzing the direct and indirect impacts of a given change in a particular sector or region.
Insurable value
The value of the portions of the property that are physically destructible.
Intangible characteristics
Attributes that are not directly measurable or quantifiable, and therefore must be expressed in a qualitative or abstract manner.
Interest-only loan
A method of loan amortization in which interest is paid periodically over the term of the loan and the entire original loan amount is paid at maturity.
Internal growth
The rate at which a base population or the number of new households is changing due to natural increase (births less deaths) and time (the aging and maturation of that population), as children are born, grow up, and form families and households of their own.
Internal rate of return (IRR)
The percentage rate earned on each dollar that remains in an investment each year. The IRR of an investment is the discount rate at which the sum of the present value of future cash flows equals the initial capital investment.
Internal rate of return method
A comparison method that calculates the internal rate of return of the differential cash flow between any two investment alternatives, then compares that rate with the user’s opportunity cost. Also see internal rate of return.
Inventory
The supply or stock of a given commodity or a listing thereof.
Investing
Limiting current consumption in favor of future consumption.
Investment value
The value to a specific investor, based on that investor’s requirements, tax rate, or financing.