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This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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March 12, 2021 at 2:56 pm #614294
boychenkove
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Dear John
To produce something one needs to buy materials and use labour. How come the current price of materials and labour is not the price for the first year (unlike the selling price)? Is it the price of year -1 -0?
Thank you in advance.
Veronika
March 13, 2021 at 7:50 am #614328
John Moffat
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- Topics: 57
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If we are evaluating a new project we will look at what costs are currently when estimating the future flows. However costs will not be incurred until the project has started and so the first costs will be next year and by next year they will be higher due to inflation.
March 15, 2021 at 5:31 pm #614484
boychenkove
- Topics: 16
- Replies: 89
thanks!
March 16, 2021 at 9:31 am #614507
John Moffat
Keymaster
- Topics: 57
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You are welcome 🙂
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