1)Sir in investment appraisal, if payment is by lease and its mentioned in question that lease payment is payable at the start of each year then it will come from year 0 na?
2)If payment is by lease and its mentioned in question that lease payment is payable in 1 years time, then from which year it will come?
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Investment appraisal
8y ago#1There is no such thing as year 0 !!
Time 0, time 1, etc are points in time that are one year apart.
Time 0 is the start of the first year.
Time 1 is the end of the first year / start of the second year.
Time is the end of the second year / start of the third year.
and so on.
If the lease payment is at the start of the first year then it is at time 0.
If it is at the end of the first year then it is at time 1
Please watch the lectures on this - I am not going to keep typing out my lectures here!
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