Sir,
Why do we multiply the discounting factor with the cash inflow?
Shouldn't it be multiplied by what we borrowed? Or outflow
Ask the Tutor ACCA MA
Net Present Value (Capital Budgeting)
5y ago#1The purpose of discounting is to calculate the equivalent amount now for a cash flow in the future.
I explain all of this in my free lectures on interest and on discounting.
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