Examlex
Choose the INCORRECT statement.
Cash Flows
The movement of money into and out of a business, representing its operating, investing, and financing activities.
WACC
Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including debt, equity, and any other long-term debt.
Reinvestment
The process of using dividends, interest, or any other form of income generated by an investment to purchase additional shares or units of that investment.
IRR Method
The process of estimating the rate of return on an investment by setting the net present value of all cash flows to zero, to assess its profitability.
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