CF 3 = 10,000, N 3 = 1CF 2 = 1,000, N 2 = 3CF 1 = 0, N 1 = 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2

 

3

 

4

 

5

 

6

 

7

8

9

10

 

 

 

 

 

 

CFO = -11,000

:KHQHYHU￿\RX￿HQWHU￿D￿VHULHV￿RI￿FDVK￿IORZV￿￿LW￿LV￿LPSRUWDQW￿WR￿DFFRXQW￿IRU￿ HYHU\￿SHULRG￿RQ￿WKH￿FDVK￿IORZ￿GLDJUDP￿￿HYHQ￿SHULRGV￿ZLWK￿FDVK￿IORZV￿RI￿ ]HUR￿

Entering Cash Flows

7KH￿+3￿￿￿%,,￿FDQ￿VWRUH￿DQ￿LQLWLDO￿FDVK￿IORZ￿SOXV￿￿￿￿DGGLWLRQDO￿FDVK￿IORZ￿ JURXSV￿￿(DFK￿FDVK￿IORZ￿JURXS￿FDQ￿KDYH￿XS￿WR￿￿￿￿FDVK￿IORZV￿￿(QWHU￿FDVK￿

IORZV￿XVLQJ￿WKH￿IROORZLQJ￿VWHSV￿￿￿3UHVV￿*&￿WR￿FOHDU￿WKH￿UHVLVWHUV￿￿￿(QWHU￿WKH￿QXPEHU￿RI￿SHULRGV￿SHU￿\HDU￿DQG￿SUHVV￿*b￿

￿￿(QWHU￿WKH￿DPRXQW￿RI￿WKH￿LQLWLDO￿LQYHVWPHQW￿￿WKHQ￿SUHVV￿,￿￿￿7KH￿´Mµ￿ VWDQGV￿IRU￿WKH￿FDVK￿IORZ￿´QXPEHU￿µ￿￿￿WKURXJK￿￿￿￿￿

￿￿(QWHU￿WKH￿DPRXQW￿RI￿WKH￿QH[W￿FDVK￿IORZ￿DQG￿SUHVV￿,￿

￿￿,I￿WKH￿DPRXQW￿HQWHUHG￿LQ￿VWHS￿￿￿RFFXUV￿PRUH￿WKDQ￿RQFH￿FRQVHFXWLYHO\￿￿ HQWHU￿WKH￿QXPEHU￿RI￿WLPHV￿LW￿RFFXUV￿￿DQG￿SUHVV￿*C￿

￿￿5HSHDW￿VWHSV￿￿￿DQG￿￿￿IRU￿HDFK￿,￿DQG￿*C￿XQWLO￿DOO￿FDVK￿IORZV￿KDYH￿EHHQ￿HQWHUHG￿
78 6: Cash Flow Calculations