What is multiple cash flow?
Also, what are the different kinds of multiple cash flows we can have?
Let's start with the three types of cash flow in the cash flow statement:
- Cash Flow From Operations.
- Cash Flow From Investing Activities.
- Cash Flow From Financing Activities.
Also, what is the annuity formula? An annuity is a series of periodic payments that are received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on an amortized loan. The annuity payment formula shown is for ordinary annuities.
In this manner, can you compare or combine cash flows at different times?
No, you cannot compare or combine cash flows at different times. A dollar today and dollar in one year are not equivalent. To move a cash flow forward in time, you must compound it. To move a cash flow back in time, you must discount it.
What is total cash flow?
Total cash flow is simply the net amount of all cash flowing in and out of your business, from all sources. If you have $350,000 worth of cash coming in each year as revenue and other income and $300,000 going out for expenses and capital investment, then your total cash flow is $50,000.