Question
Two problems with IRR (Internal Rate of Return) calculations are that they do not account for cash flows coming out of the investment, and they
Two problems with IRR (Internal Rate of Return) calculations are that they do not account for cash flows coming out of the investment, and they do not anticipate and "save up" for negative cash flows that will occur in the future.To correct for this and get a more realistic picture of the yield on the entire original investment, we use (blank) . We use a (blank) to account for positive cash flows, and (blank) to put aside money for negative cash flow periods. Answer choices: MIRR Modified Rate of Return, Reinvestment Rate, Financing or Safe Rate, Net Present Value, Yield Curve
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