Cash Flows

Am i right in thinking that on a table when it shows net cash flow and cumulative cash flow you use the net cash flow for NPV and cumulative cash flow for payback?

Thanks

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Yes

    discount each year to find the discounted cash flow (or present value of the cash flow) for that year. Then add these annual values to find the Net Present Value of the project

    Find the cumulative cashflow each year.
    Then when you're cumulative cash flow at the end of a year exceeds the initial investment your project has paid back during that year.
    Sandy
    [email protected]
    www.sandyhood.com
  • jewels.p
    jewels.p Registered Posts: 1,774
    SandyHood wrote: »
    Yes

    discount each year to find the discounted cash flow (or present value of the cash flow) for that year. Then add these annual values to find the Net Present Value of the project

    Find the cumulative cashflow each year.
    Then when you're cumulative cash flow at the end of a year exceeds the initial investment your project has paid back during that year.

    Thanks Sandy
  • NO BUSINESS CASE
    NO BUSINESS CASE Registered Posts: 85 ? ? ?
    Thanks Sandy I have read and listened to most of your stuff on this unit and it has been most handy especially as I have crammed this unit all into 1 month!

    Jewels.P all the very best for Monday!!!
  • jewels.p
    jewels.p Registered Posts: 1,774
    Thanks Sandy I have read and listened to most of your stuff on this unit and it has been most handy especially as I have crammed this unit all into 1 month!

    Jewels.P all the very best for Monday!!!

    Thanks good luck to you too!
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