Archive | Cash Flow

Top 3 Types of Cash Flow | Financial Management

This article throws light upon the top three types of cash flows for investment analysis. The types are: 1. Initial Investment 2. Operating Cash Flows 3. Terminal Cash Flows. Cash Flow: Type # 1. Initial Investment: The initial investment is an outlay of cash that takes place in the initial period, t=0, when an asset […]

Cash Flows and Accounting Profit

There are two alternative criteria available for ascertaining future economic benefits of an investment proposal, (i) accounting profit, and (ii) cash flows. The term ‘accounting profit’ refers to the figure of profit as determined by the Income statement or Profit and Loss Account, while ‘ cash flow’ refers to cash revenues minus cash expenses. The […]

Cash Flow for Investment Analysis

This article provides a study note on Cash Flow for Investment Analysis:- 1. Conventional and Non-Conventional Cash Flows 2. Incremental Cash Flows 3. Determination. Conventional and Non-Conventional Cash Flows: When an initial cash outlay (outflow) is followed by a series of cash inflows of uniform or unequal amounts, it is called conventional cash flows. Most […]

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