We generally determine the annual cash flow for a project by summing
all incoming and outgoing cash flows.In coming flows might be revenue
or savings and outgoing flows are typically material costs and
taxes.Following are the different components of the project:
savings,Revenue,working capital,cash flow to/from company,fuel
cost,labour cost, material cost, taxes, capital cost.
a)What effect will the time value of money have on the different
components of the project.
b)Since management is prediction what areas do you feel the most
comfortable predicting and which areas are you least comfortable
predicting |