VideoRichard Block is an adjunct professor of management accounting at Babson College and a CFO Leadership Partner at Tatum LLC, an executive consulting services firm. Dr. Jan Bell holds the Weiner Family Term Chair and is a professor of accounting at Babson College.
Reference: Management Accounting, Fifth Edition, Atkinson, Kaplan, Matsumura, and Young; 2007, Pearson Prentice Hall, was used as a general reference for this article.
To download an Excel file containing the spreadsheets we reference in this article, click here.
Reader CommentsDisplaying 3 of 5
Richard Block
Nov 23, 2009 5:34 PM ET
Yes, Martha, there is a reinvestment assumption in IRR
Joe, In response to your November 20, 2009 post, I have to disagree again. Reinvestment of savings or interest is a … more
Joe Smolira
Nov 20, 2009 2:46 PM ET
No reinvestment assumption, Part 2
One last analogy with the same numbers. Suppose you live on a planet we?ll call Bob. Life is pretty boring on Bob. All … more
Joe Smolira
Nov 20, 2009 2:45 PM ET
No reinvestment assumption, Part 1
While I agree that the mathematics that any intermediate cash flows must be invested at the IRR to the end of the … more
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