Question

What is cost of capital in npv calculation of inflow cash after tax and depriciation?

Answer 1

the cost of capital in npv calculation of inflow cash after tax and depriciation is imitation of income over population

Answer 2

Payback Period example: A project costs $2Mn and yields a profit of$30,000 after depreciation of 10% (straight line) but before tax of 30%. Lets us calculate the pay back period of the project. While calculating cash inflow, generally depreciation is added back as it does not result into cash out flow.