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 Reading 6: Discounted Cash Flow Applications 
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Joined: 25 Feb 2013
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NPV is most often better than IRR because it can handle uneven cash flow (-/+), is not subject to reinvest rate issue, take into account the size of the project and overall shareholder value creation.
IRR is the concept behind YTM. It is also the basis of the money weighted return calculation. It is the rate the makes NPV 0.
Holding period return is the most simple measure of return. (end value - beginning value + incremental cash flow) / Beginning value
HPR = (p1-p0+D)/p0
EAY = {(HPY)^(365/days)} - 1
BDY = (Discount/Face)*(360/days)
MMY = (360*BDY)/(360-(BDY*days)) alternatively, MMY = HPY * (360/days)
BDY
Money-weighted return is the IRR of the of the periodic cash flows.
Time-weighted return is the compounded growth rate measured at each cash inflow/outflow point. (this the preferred measure for non-discretionary account performance measure because it is not influenced by unfavorable timing of cash inflows / outflows beyond the port mgrs control).


12 Mar 2013
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Joined: 25 Feb 2013
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Useful for December candidates!


12 Mar 2013
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Joined: 25 Feb 2013
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This is all in the readingsā€¦


12 Mar 2013
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Joined: 27 Jan 2015
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In my case it was the fact that I submitted with 47 months of work experience, and there was no point in waiting till NYSSA approval, given that an upgrade from affiliate to regular would start the process all over again anyway.....!!!!!!!!!!!!!!!!!

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27 Jan 2015
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