This is a conceptual question. I am confused with asituation. The attached my calculations.
I am trying to do a very simple three-period DCF by two methods: 1. deducting interest expense from cash flow 2. accruing interest expense to debt. However, for some reason the two methods are giving me different answers (the yellow cells show the answer). Theoretically, both of them should yield the same answer. Can anyone here please help me understand what I am doing wrong?