Net Present Value (NPV)

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Payback Period
Payback Period Capital Budgeting Investment Recovery Cash Flow Analysis Internal Rate of Return (IRR) Net Present Value (NPV)
In capital budgeting, the payback period estimates the time required to recover the initial investment from cash inflows generated by the project. The major limitation of this method is that it does not consider cash flows after the payback period and, thus, it's not a reliable measure of the overall profitability of an investment.
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