I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???

PLease help!!

On Mar 22, 5:30 pm, Jay wrote:
I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???

No. That is absolutely the right thing to do. Let me be sure I
understand you: you have an inflow and outflow in the same time
period. If so, then you are correct to use the net cash flow; that
is, inflow minus outflow (or vice versa, depending on how you choose
to sign your cash flows).

Right, if you didn't use the net cash flow then you'd have too many cash
flows, since two of them occur at the same time.

Dave
--
A hint to posters: Specific, detailed questions are more likely to be
answered than questions that provide no detail about your problem.


"joeu2004" wrote:

On Mar 22, 5:30 pm, Jay wrote:
I have a silly question. I calculated an IRR for my company. However, I have
a cashflow that is coming in at the same time as my "Cost Of Acquisition". If
I add the two together is this wrong???

No. That is absolutely the right thing to do. Let me be sure I
understand you: you have an inflow and outflow in the same time
period. If so, then you are correct to use the net cash flow; that
is, inflow minus outflow (or vice versa, depending on how you choose
to sign your cash flows).