Conflict between discounted cash flow (DCF) analysis and accrual accounting
A capital investment project was approved based on a well-done DCF analysis. After the initial investment, the expected cash flows of the project were negative for the first two years, small but positive for the next two years and then very large for the last four years. The cash flows were in the form of saving of costs, not additional revenues.

Question

Conflict between discounted cash flow (DCF) analysis and accrual accounting
 A capital investment project was approved based on a well-done DCF analysis. After the initial investment, the expected cash flows of the project were negative for the first two years, small but positive for the next two years and then very large for the last four years. The cash flows were in the form of saving of costs, not additional revenues.

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The Answer of Conflict between discounted cash flow (DCF) analysis and accrual accounting
 A capital investment project was approved based on a well-done DCF analysis. After the initial investment, the expected cash flows of the project were negative for the first two years, small but positive for the next two years and then very large for the last four years. The cash flows were in the form of saving of costs, not additional revenues.

Conflict Between Discounted Cash Flow (DCF) Analysis and Accrual Accounting