To discuss about : The relationship of IRR ( Internal rate of return ) and payback of the project and the suggestion that the computation on the relationship will have for the projects with longer period and with a relatively constant cash flows. Introduction: The payback period is one of the capital budgeting techniques, which refers the number of periods needed to get back the actual investment in a project. The internal rate of return i s a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Chapter 8, Problem 8CTCR

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To discuss about: The relationship of IRR (Internal rate of return) and payback of the project and the suggestion that the computation on the relationship will have for the projects with longer period and with a relatively constant cash flows.

Introduction:

The payback period is one of the capital budgeting techniques, which refers the number of periods needed to get back the actual investment in a project. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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