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Net Present Value (Capital Budgeting)

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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November 3, 2020 at 12:29 am #593889
Sourav9271
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Sir,
Why do we multiply the discounting factor with the cash inflow?
Shouldn’t it be multiplied by what we borrowed? Or outflow
November 3, 2020 at 10:20 am #593926
John Moffat
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The 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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