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#reading-7-discounted-cashflows-applications

Question

The IRR assumes that all project cash flows can be reinvested to earn **[...]**

Answer

a rate of return exactly equal to the IRR itself.

Tags

#reading-7-discounted-cashflows-applications

Question

The IRR assumes that all project cash flows can be reinvested to earn **[...]**

Answer

?

Tags

#reading-7-discounted-cashflows-applications

Question

The IRR assumes that all project cash flows can be reinvested to earn **[...]**

Answer

a rate of return exactly equal to the IRR itself.

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**Subject 1. NPV and IRR**

le. Reinvestment The IRR is intended to provide a single number that represents the rate of return generated by a capital investment. As such, it is an easy number to interpret and understand. However, calculation of <span>the IRR assumes that all project cash flows can be reinvested to earn a rate of return exactly equal to the IRR itself. In other words, a project with an IRR of 6% assumes that all cash flows can be reinvested to earn exactly 6%. If the cash flows are invested at a rate lower than 6%, the realized return

le. Reinvestment The IRR is intended to provide a single number that represents the rate of return generated by a capital investment. As such, it is an easy number to interpret and understand. However, calculation of <span>the IRR assumes that all project cash flows can be reinvested to earn a rate of return exactly equal to the IRR itself. In other words, a project with an IRR of 6% assumes that all cash flows can be reinvested to earn exactly 6%. If the cash flows are invested at a rate lower than 6%, the realized return

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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