Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

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!