Peter Gordon, manager of $ 1.6 billion investment in municipal securities at a price just got phone calls from sales representatives of two investment banks, all of which offer attractive opportunities for the reinvestment of $ 50 million, which will soon become available. He can choose either but not both proposals. The case can be used to view the contents of "tombstone" in order to strengthen the NPV and IRR of the concept to witness inappropriate to use the IRR as a criterion for choosing between mutually exclusive projects, and to emphasize the reinvestment assumption IRR. "Hide
by Sherwood C. Frey Jr., Edward R. Case Source: Darden School of Business 8 pages. Publication Date: 05 April 1991. Prod. #: UV6116-PDF-ENG
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