Question: when using IRR how do you account for cash outflows that build up capabilities used across multiple distinct cash inflows?
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similar perhaps to a CEO investing into capex whose results won't be seen for many years.
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. well, companies break out SAG and RD&E for that reason, but the dot-connection to specific return inflows is missing :/
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unless those cash outflows manifest into visible cash inflows somewhere down the line, you can't account for it.
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