In general,any cash flow occurring at the beginning of the first time period must be placed outside the NPV function.

Name: In general,any cash flow occurring at the beginning of the first time period must be placed outside the NPV function.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the NPV calculation discounts all cash flows to their present value at a given rate, and any cash flow occurring at the beginning of the first time period is already in its present value. As a result, it should be excluded from the NPV calculation.

In General,any Cash Flow Occurring at the Beginning of the First