Cash Flow Analysis Essay

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Cash flow metrics explained and illustrated in this encyclopedia include:
• Net cash Flow
The net of incoming and outgoing cash flows, usually expressed as net cash flow per period (e.g., net per year or net per month).
• Cumulative cash flow
For a series of cash flow events, the cumulative value of all cash flows through the end of the current period.
• Future value/Compound Interest
The value at some time in the future of money that will be received or paid at the future time. For instance, funds deposited in the bank today and earning interest until a future time bring a future value (initial deposit plus earned interest) greater than the initial deposit.
• Present value (Discounted Cash Flow DCF, Net Present Value) the value today of money that will not be received or paid …show more content…

• Return of investment ( ROI)
ROI in cash flow analysis usually means a ratio or percentage, comparing an investment's incremental gains to investment costs. Return of investment( ROI)
• Internal rate of return (IRR)
The interest rate that yields a net present value of 0 for a cash flow stream (see the encyclopedia entry IRR for an explanation of how this is determined and what it means). In bond investing, the IRR for a bond is called Yield to maturity
• Break-even point usually expressed as the number of units of a product that must be sold at a given price in order for product costs to exactly equal incoming product revenues. Units sold in excess of the break-even number represent net gain, or positive margin.
• Total cost of ownership (TCO)
Usually applied to expensive assets or other acquisitions, TCO is the estimated total life cycle cost brought by acquiring, installing/deploying/starting, operating, maintaining, and disposing of the item at the end of its economic life.
• Cumulative average growth rate

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