Reply to thread

Message: <blockquote data-quote="eranga_rama" data-source="post: 14276607" data-attributes="member: 85571">There are two types of cashflows...Real cashflows and nominal cashflows....One is adjusted for inflation and the other one is not...COC comprises of inflation, the risk of undertaking the project as wells as the opportunity cost (You could have placed a FD rather than investing in the project)By calculating NPV you determine whether it's worthwhile undertaking the project..Whatever the capital you infuse needs to be recovered including interest + return. If not the project will have a negative NPV and will be abandoned..Loss on disposal is a relevant cost with regard to the project..more explanation is needed for your last question ..</blockquote>

Top Bottom