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relevant cost

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

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October 15, 2021 at 5:23 pm #637768
shaunak22
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why is finance cost not considered a relevant cost during investment decision making?
October 16, 2021 at 9:39 am #637799
John Moffat
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When using the NPV criteria, the whole point of discounting is to account for the interest cost.
To show it is a cash flow as well would be accounting for it twice.
I explain this in my free lectures!
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