Computing the net present value

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To be more specific, does it or does it not include the purchase price of the machine, or is it the funds on top of the purchase price? If it does, where in the formula is it included and how/where exactly do we account for it? If it doesn't, then why do we not take the purchase price of the machine into the account when we calculate the Net Present Value, which includes the WACC, the AFN, and the future cash flows? Isn't the purchase price of the machine essential to determine the NPV, or how much the machine will bring us net of ALL cash outflows?

Lots of questions here, but it really is just one: what exactly is AFN?

Reference no: EM131016889

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Computing the net present value : Lots of questions here, but it really is just one: what exactly is AFN?

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