how is playback period calculated? how is it usful in determining IRR?
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playback period in capital budgeting refers to the period of time required to recoup the fund's expended in a investment or to reach the break - evenpoint .Internal Rate Of Return ( IRR ) is a metric used in capital budgeting measures the profitability of potential investments . IRR is a discount rate that makes the net present value ( NPV ) of all cash follow from a particular project equal to zero
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