NEED GENIUS HERE -COME QUICK
say, this segment of a company is expected to produce -100K cash flow till perpetuity
how do i discount it?
discounting negative value makes no sense eg,
if my cost of capital was 10% i would have a PV of -1M
if my cost of capital was 50% i would have a PV of -0.2M
clearly this does not make sense, if my cost of capital is higher, i would lose more since i need higher return to compensate for my higher cost of capital
why would you discount a negative cash flow? lol
cause i want to find out the present value of the negative cashflow WTF BRO?
make the discount rate negative obvi
thanks buddy, if everyone used that there would be no financial crisis
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