Including returns from reinvested project's net cash flows in the DCF analysis
I perform several DCF analysis daily and have to make analysis aligned to my company's investment analysis proceeds. There is a rule that returns from reinvestment of exceeding cash flows should not be part of a DCF analysis. From my own research on this subject I found out that it is probably related to the concept that IRR obtained already considers the reinvestment of positive cash flows. Is this intepretation the most correct? If not, could you explain what are the other reasons? Thank you in advance.
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