Examlex
A good predictor of future cash flows includes:
Storage Costs
Expenses incurred for storing goods or materials until they are used or sold, which can impact a company's overall profitability.
Insurance Cost
Insurance cost is the expense incurred in purchasing insurance policies, offering protection against potential financial losses.
Safety Reserves
Funds or stocks kept on hand by an organization or individual as a buffer against potential shortfalls or emergencies.
Obsolescence Cost
Obsolescence cost refers to the loss of value of an asset due to technological advancements, changes in market demand, or regulatory changes.
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