Why is it true that a reinvestment rate is implicitly assumed whenever we find the present value

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Why is it true that a reinvestment rate is implicitly assumed whenever we find the present value of a future cash flow? Would it be possible to find the PV of a FV without specifying an implicit reinvestment rate?

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Fundamentals Of Financial Management Concise Edition

ISBN: 9781285065137

8th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Jul 15, 2024 10:09 AM

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Why is it true that a reinvestment rate is implicitly assumed whenever we find the present value

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Fundamentals Of Financial Management Concise Edition

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