your idea has nothing to do with positive cash flows

I see your point. But you are simply solving IRR using a stream of cash flows. Based on your formula,

C0 + C1/(1+r) + C2/(1+r)^2 + Cn/(1+r)^n

As long as you can sell your property at a price(Cn) higher than C0, the above formula will always be positive if r is equal to 0. It's contrary to what you are trying to say.

It's correct to say that the higher the IRR the better an investment. But it really doesn't have anything to do with positive cash flows.

所有跟帖： 

• wow, how often do we see or can we assume the discount rate is z -kukuren2000- ♀ (0 bytes) () 03/22/2012 postreply 20:20:47

• 你說到本質了 -大家幫我買房- ♂ (0 bytes) () 03/23/2012 postreply 07:59:13

• 你的情況，理論依然成立，賣了更高價，Cn>C0,Ci=0，就是正現金流。 -大家幫我買房- ♂ (0 bytes) () 03/23/2012 postreply 07:58:30

• you are missing my point -egghead1- ♂ (259 bytes) () 03/23/2012 postreply 12:52:58

• be careful, your conclusion is very wrong -大家幫我買房- ♂ (553 bytes) () 03/23/2012 postreply 18:13:48

• that's exactly my point -egghead1- ♂ (425 bytes) () 03/23/2012 postreply 19:50:12