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A business scenario that the project will not address because it is already the case (or not the case).
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∙ 13y ago
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What is IRR reinvestment rate assumption?
The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.
Why same number of investment but different growth rates?
Investment and growth rates are not the same. You would invest in a project on the assumption of making a higher return at some future date. That specific project would have a forecast and actual growth rate -- i.e. the rate at which the project grows.
How does the reinvestment rate assumption affect the NPV versus IRR conflict?
Apparently the NPV and IRR are methods to obtain capital budgets. The reinvestment rate assumption affects both methods because it is what determines now much incoming cash flow is reinvested into project.
How do you use assumption in sentence?
It'll take a lot of gumption to espouse that assumption. That's your assumption. That is not an assumption.
In what sense is a reinvestment rate assumption embodied in the npv irr and mirr methods what is the assumed reinvestment rate of each method?
IRR assumes that all cash flows are reinvested at the project's rate of return, seldom a defensible assumption. Since NPV discounts future cash flows at the investor's cost of capital, it more accurately represents the value of a project. It assumes that cash flows are reinvested at the cost of capital. This is a good assumption so long as the financing can be repaid in stages so as to reduce interest or equity cost. MIRR enables a project to be described with the simplicity of a percentage rate of return, as with IRR, but does not assume that cash flows can be effectively reinvested in the project at the calculated rate of return. Instead, cash flows are assumed to be reinvested at any given rate, such as a bank interest rate.
Sentence for the word assumption?
I do not support your assumption. Your assumption is based upon few facts.
What is an assumption of aged people?
I think assumption of older people is cultural assumption What do you think
What is an heroic assumption?
An assumption that is unlikely to be true.
What is a fundamental assumption?
accounting assumption is nothing
Where is the Assumption Public Library District in Assumption located?
The address of the Assumption Public Library District is: 205 North Oak Street, Assumption, 62510 1100
Do you say assumption to the throne or on the throne?
I always said "assumption to the throne" but just to confirm that, I checked with Google. There were about 46,000 pages that said "assumption to the throne" and only 3 that said "assumption on the throne".
What is a warranted assumption?
A warranted assumption is an assumption that has evidence and reasonable interpretation of this evidence to support it. But, it's still an assumption and should only be used as a guide in finding the real facts. A warranted assumption should not be acted on if any harm will come of it.
