FACC 300 Lecture Notes - Lecture 3: U.S. Route 30 In Pennsylvania, Supreme Council Of The Armed Forces, Compound Interest
30 Nov 2017
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Inflow or outflow of cash at a particular point in time: capital expenditures and operating expenses are negative flows, i. e. funds flowing out of a project or outflows. Revenues are positive flows, i. e. funds flowing into the project or inflows. Describes a project by its stream of inflows and outflows over time. End-of-period convention: outflows and inflows occur at irregular intervals over time, outflows and inflows occurring over a particular period of time are represented by net amounts at end of the periods over which they occur. Receive either: today, in one year"s time: today is worth more than in one year"s time. However, if the second choice is changed to: Receive either: today, in one year"s time. The choice is not as evident it depends on how the money is used If money is invested and earns 10 %, the second alternative is preferable.
