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The Power Of Reinvesting Cash

|Includes:Ocwen Financial Corporation (OCN)

If you do a runoff scenario with a depreciating asset, what's the impact of reinvesting that cash flow at 5%? Pretty powerful it turns out. In the below example, no cash reinvestment get you less than $400 of NPV, while reinvesting cash at 5% get you ~$600 of PV. Always run your own math!

Stocks: OCN