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.
ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1
no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this
B
Sales assumption is an approximate figure of sales expected to occur in a particular time period.
* Answer:POOP ====== ---- ====== ====== Answer:POOP * Answer:POOP ====== ---- ====== ====== Answer:POOP
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.
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.
what is the difference between an observation and an assumption
Critics argue that equivalent yield, which is calculated using the reinvestment rate assumption, may not reflect the actual reinvestment opportunities available. Additionally, it assumes that coupon payments can be reinvested at the equivalent yield, which may not always be achievable in practice. Lastly, equivalent yield does not account for the risk associated with reinvestment, potentially leading to inaccurate valuation results.
the assumption that nothing but the price of a good will change
Good luck with your writting Ryan
all the assumption of planning is premises...
You can find details of the American Recovery and Reinvestment Act at Recovery.gov.
ReinvestmentUsing dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.Viper1
These laws include the Community Reinvestment Act, which promotes community credit needs.
By definition the time period assumption presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Answer is Time period assumption