Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.

Tags

#reading-7-discounted-cashflows-applications

Question

A project with an IRR of 6% assumes that all cash flows can be reinvested to earn **[...]**

Answer

exactly 6%.

Tags

#reading-7-discounted-cashflows-applications

Question

A project with an IRR of 6% assumes that all cash flows can be reinvested to earn **[...]**

Answer

?

Tags

#reading-7-discounted-cashflows-applications

Question

A project with an IRR of 6% assumes that all cash flows can be reinvested to earn **[...]**

Answer

exactly 6%.

If you want to change selection, open document below and click on "Move attachment"

**Subject 1. NPV and IRR**

y a capital investment. As such, it is an easy number to interpret and understand. However, calculation of 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, <span>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 will be less than the IRR. If the cash flows are invested at a rate higher than 6%, the realized return will

y a capital investment. As such, it is an easy number to interpret and understand. However, calculation of 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, <span>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 will be less than the IRR. If the cash flows are invested at a rate higher than 6%, the realized return will

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 |

Do you want to join discussion? Click here to log in or create user.