Chapter 1: Cash Flow and Time Value of Money
Chapter 1: Cash Flow and Time Value of Money
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What is cash flow?
What is cash flow?
In our daily life, money comes and goes at different points in time. Whether it is an individual or a firm, the idea is the same: it “flows” in and out of pocket. This transaction of money is called the cash flow.
Cash Flow
Cash Flow
The amount of money that transfers into and out your account at different points in time. For example, your end-of-the-year bonus paycheck is a cash flow; your monthly credit card payments are multiple cash flows.
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