tax

If the net cash flow is negative then there is no tax payable, but there is a cash inflow of the tax saving. Have you not watched my free lectures on investment appraisal with tax?

yes sir, but I do get confused sometimes

that means when cash flow is negative , we will add tax?

If net cash flow is negative, then company will receive tax? Please confirm im a bit confused

No, they do not receive tax but they save tax, and a saving is effectively a cash inflow for the project. As I explain in my lectures, we always assume that the company is already making profits and is already paying tax. If a new project has a positive net cash flow then there will be more tax payable - so a cash outflow. If a new project has a negative cash flow, then the company as a whole will pay less tax, so a tax saving due to the project.

Thank you so much

You are welcome :-)