In Capital Budgeting Chapter there is a method named Internal Rate of Return (IRR). In this method to find out the IRR we have to find out Fake Pay Back Period By dividing Intial Investment with average cash inflow. I want to know why it is called Fake Pay Back period, what is the logic behind this? If any body know the logic please send the information relating to this topic.
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Fake Pay Back Period
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Hello Dibyendu Das! Fake Pay back period is calculated only when the IRR (INTERNAL RATE OF RETURN ) isn't specifically specified .
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