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hi sir , may i ask u where must i put interest item in a calculating net present value ? is it deducting before gross profit or profit before tax or profit after tax ?thank you.
In future please ask in the Ask the Tutor Forum if you wish me to answer – this forum is for students to help each other.
Interest payments never ever appear in the cash flows when calculating NPV’s.
The discounting itself accounts is how we account for interest – to include interest in the cash flows would be accounting for it twice.You should watch the free lectures on investment appraisal.
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