Re‐examination of the reinvestment rate assumptions
G.A. Karathanassis
(Athens University of Economics and Business, Department of Business Administration, Patission 76, 10434, Athens, Greece)
1419
Abstract
The paper compares the Net Present Value and the Internal Rate of Return Methods paying particular attention to Mutually Exclusive Projects. In addition it looks into the reinvestment rate assumption concept. Using a different approach to those used to‐date, it is shown that the reinvestment assumption should not concern analysts, provided they use the Net Present Value Method.
Keywords
Citation
Karathanassis, G.A. (2004), "Re‐examination of the reinvestment rate assumptions", Managerial Finance, Vol. 30 No. 10, pp. 63-71. https://doi.org/10.1108/03074350410769317
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited