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Sunday, June 16, 2013

Cash Flow of A Project

What is a cash flow?

Regarding to Wikipedia: Cash flow is an accounting term that refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to specific project.

What is a cash flow projection?

Cash Flow Of a Project is called flow of budget of a project is a term use to express the its inflows and outflows in a period of time.

Calculating of cash flow for the following purposes:

- To determine a project's rate of return or value.
- Assessment the status of a project.
- Assessment the solvency of a project
- Calculation the project evaluation criteria such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), Profitability Index (PI).
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