Cash Flows

jewels.p

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

SandyHood

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.

jewels.p

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

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

NO BUSINESS CASE wrote: »

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!