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Is IRR as Foolproof as We Thought?
By reinvestor on July 1, 2015
I recently had a conversation with an investor that was relying on their internal rate of return when considering an investment.
While I find the IRR to be a weak tool in general, the most pressing concern during this conversation was the reinvestment rate assumption that is embedded in the internal rate of return calculation.
Related: Introduction to Internal Rate of Return (IRR)
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