Cash Flows

jewels.pjewels.p Font Of All KnowledgePosts: 1,774Registered
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

  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    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.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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 CASENO BUSINESS CASE Feels At Home Posts: 85Registered
    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.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    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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