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# Cost of capital

Financial Management

Why cash inflow at 0 year in calculation of npv at two discount rate is shown as negative in brackets although this is an inflow for company?

Atharv Sankliya

CA Inter

3K+

19-Sep-23 01:08

69

You can consider and calculate inflow. Answer would be same

Suraj Lakhotia

19-Sep-23 07:19

You can consider and calculate inflow. Answer would be same

But if we consider it as inflow npv by lower discount rate would be negative and npv by higher rate would be positive

Atharv Sankliya

CA Inter

3K+

19-Sep-23 08:50

Suraj Lakhotia

19-Sep-23 09:07

Sir answer is same the only difference is npv by lower rate is negative So my question is does this npv by lower rate is negative because if cost of debt is 10% the company is paying more to investor as per discount rate of 10 %

Atharv Sankliya

CA Inter

3K+

19-Sep-23 09:26

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