M
MikeW
Using NPV on 48 values of which 47 are negative (i.e., a cumulative negative
balance that is increasing to 0). When I LOWERED the interest rate from 10%
to 1% the NPV got worse. In both cases, the NPV was a negative but at a
lower interest rate it was much more negative. It is almost like it is
calculating in the absolute. Don’t understand why. Not even sure I can use
NPV on a cumulative balance (trying to do a cost recover model over 4 years)
balance that is increasing to 0). When I LOWERED the interest rate from 10%
to 1% the NPV got worse. In both cases, the NPV was a negative but at a
lower interest rate it was much more negative. It is almost like it is
calculating in the absolute. Don’t understand why. Not even sure I can use
NPV on a cumulative balance (trying to do a cost recover model over 4 years)