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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?

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Atharv Sankliya

Atharv Sankliya

CA Inter

3K+

19-Sep-23 01:08

161

Answers (5)

You can consider and calculate inflow. Answer would be same


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

19-Sep-23 07:19

CA Suraj Lakhotia Admin

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


Thread Starter

Atharv Sankliya

Atharv Sankliya

CA Inter

3K+

19-Sep-23 08:50

Pls share your working


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

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 %

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Thread Starter

Atharv Sankliya

Atharv Sankliya

CA Inter

3K+

19-Sep-23 09:26

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