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FAIR RATE OF RETURN. The maximum rate of return which an investor owned public utility is entitled to earn on its rate base in order to pay interest and dividends and attract new capital. The rate, or percentage, usually is determined by state or federal regulatory bodies. 

FIRST COST. The initial investment in a project or the initial cost of capitalized property including transportation, installation, preparation for service, and other related initial expenditures. 

FIXED ASSETS. That tangible portion of an investment in an enterprise or project comprising land, buildings, furniture, fixtures, and equipment with an expected life greater than one year.

FIXED COST. Those costs which tend to be unaffected by changes in the number of units produced or the volume of service given. 

FUTURE WORTH. (1)  The equivalent value at a designated future date based on the time value of money.  (2)  The monetary sum, at a given future time, which is equivalent to one or more sums at given earlier times when interest is compounded at a given rate. 

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