The Real Reinvestment Rate Assumption as a Hidden Pitfall
The paper explores a few hidden problems of the reinvestment rate assumption. The automatism of net present value method creates and applies a very special reinvestment rate assumption. This assumption does not disturb the evaluation of investment projects with orthodox cash flow patterns. However,...
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| Format: | Article |
| Language: | English |
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University of Miskolc
2016-07-01
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| Series: | Theory, Methodology, Practice |
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| Online Access: | https://doi.org/10.18096/TMP.2016.01.06 |