reinvestment rate

Why Do We Calculate Modified NPV?

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Why Do We Calculate Modified NPV? Modified NPV Calculate the terminal value of the project’s cash inflows using the explicitly defined reinvestment rate(s) which are supposed to reflect the profitability of investment opportunities ahead of the firm. What is modified NPV? Modified NPV Calculate the terminal value of the project’s cash inflows using the explicitly

Under What Circumstances Might The IRR And NPV Approaches Have Conflicting Results?

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Under What Circumstances Might The IRR And NPV Approaches Have Conflicting Results? For single and independent projects with conventional cash flows, there is no conflict between NPV and IRR decision rules. However, for mutually exclusive projects the two criteria may give conflicting results. The reason for conflict is due to differences in cash flow patterns