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Beautiful question and great explanation! Really helpful. Thanks a ton sir!
Sir, but why are we adding initial investments with the annual cashflows? To find NPV's we should deduct the inflows and outflows right?
We don't need NPV here. We need to calculate PV of outflows for different vendors so we need to select the one with lowest PV of outflows.
Thank you Sir x infinity.
Always welcome
Beautiful question and great explanation! Really helpful. Thanks a ton sir!
Sir, but why are we adding initial investments with the annual cashflows? To find NPV's we should deduct the inflows and outflows right?
We don't need NPV here. We need to calculate PV of outflows for different vendors so we need to select the one with lowest PV of outflows.
Thank you Sir x infinity.
Always welcome