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DCF question

This topic has 1 reply, 2 voices, and was last updated 2 weeks ago by John Moffat.

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March 5, 2023 at 3:41 am #680127
misslatif
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Q: I have a general question. can a capital project with all projected future cash flows as negative (with not a single positive cash flow) be analysed by a DCF method?
March 5, 2023 at 6:41 am #680137
John Moffat
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The calculations could be done in the normal way, but it would be rather pointless given that the NPV would automatically be negative!
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