Payback period, NPV, and IRR Introduction: The term "payback time" refers to the number of years needed to recoup the initial monetary outlay. The difference between the current value of cash inflows and withdrawals over a period of time is known as net present value (NPV). The term internal rate of return (IRR) is a discount rate where all cash flows' net present values (NPV) to zero.

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Chapter 7, Problem 14QAP

Summary Introduction

To calculate: Payback period, NPV, and IRR

Introduction: The term "payback time" refers to the number of years needed to recoup the initial monetary outlay. The difference between the current value of cash inflows and withdrawals over a period of time is known as net present value (NPV). The term internal rate of return (IRR) is a discount rate where all cash flows' net present values (NPV) to zero.

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