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Does anyone know why the Net Present Value in the cash flow model is so much different? Depreciation Model: $39,889 Cash Flow Model: $62,874
by bsilvereagle 13y ago
Does anyone know why the Net Present Value in the cash flow model is so much different?
Depreciation Model: $39,889
Cash Flow Model: $62,874
- pakile 13y agoTravis (who forked my model to create the cash flow model) and I chatted about this. It's primarily due to the effect of time value on money, when you finance the car. If you were to purchase the car outright, you would want to use the 1st tab; vs. financing, the 2nd tab.
- bsilvereagle 13y agoAh I missed that payments were being made on a loan, thanks for clarifying that.