IRR

J

Jay

I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???

PLease help!!
 
J

joeu2004

I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???
Click to expand...

No. That is absolutely the right thing to do. Let me be sure I
understand you: you have an inflow and outflow in the same time
period. If so, then you are correct to use the net cash flow; that
is, inflow minus outflow (or vice versa, depending on how you choose
to sign your cash flows).
 
D

Dave F

Right, if you didn't use the net cash flow then you'd have too many cash
flows, since two of them occur at the same time.

Dave
 
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