Archive | Cash Flow

Determination of Cash Flow: 7 Methods | Firm | Financial Management

The following points highlight the seven main methods used in determination of cash flow from business activities of a firm. The methods are: 1. Payback Period Method 2. Accounting Rate of Return Method 3. Net Present Value Method 4. Internal Rate of Return (IRR) Method 5. Profitability Index (PI) Method 6. Discounted Payback Period Method 7. Terminal Value Method. 1. [...]

By |2017-07-07T16:21:43+05:30July 7, 2017|Cash Flow|Comments Off on Determination of Cash Flow: 7 Methods | Firm | Financial Management

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 is purchased. It comprises, primarily, [...]

By |2016-06-28T09:22:03+05:30June 28, 2016|Cash Flow|Comments Off on Top 3 Types of Cash Flow | Financial Management

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 difference between these two criteria [...]

By |2016-06-28T09:22:03+05:30June 28, 2016|Cash Flow|Comments Off on Cash Flows and Accounting Profit
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