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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Timing of cashflows
HI
Could anyone please tell me rule/guidelines for the timing of cashflows in a NPV calculation.
Thanks
Can you explain the timing of cashflows in Fuelit (December 2000)
Could someone please explain the guidelines of The timing of cash flows in NPV
Cash flows starting in one year time when discounted gives PV at year 0
if CF starts immediately ignore cf at year 0 discount the rest and add year 0 cf in pv to get NPV
if CF starts in say year 2 discounting would give pv at year 1 You have to again discount it @df year 1 to get pv at year 0