The holding period in investment profitability is crucial as it impacts the Internal Rate of Return (IRR). The IRR calculates the profitability of an investment, considering the initial investment, future cash flows, and holding period. A longer holding period can potentially lead to higher returns if the investment's value increases over time. However, it also exposes the investor to more risk, including market fluctuations and opportunity cost. Therefore, understanding the holding period is essential in evaluating a project's performance and determining the break-even point.

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