Cash Flow Techniques

Last updated Mar 20, 2023

• Sapling
• Project

Provide data on the overall financials of the alternative solutions or projects. Each of these techniques rely on the concept of time value of money. Money in the future is worth less than money received today, so the lender needs to account for this loss.

A basic way of measure cashflow is the following formula:

FutureValue = PresentValue(1 + investment)^{Payback Period}

There are several different ways of measuring cashflow, such as:

• Discounted Cash Flow
• Net Present Value
• Return On Investment
• Internal Rate of Return