Some of the Cash Flows Shown on a Time Line

question 143

True/False

Some of the cash flows shown on a time line can be in the form of annuity payments while others can be uneven amounts.

---

Definitions:

Cash Flow Forecasts

Predictions about future cash inflows and outflows of a business over a specific period.

Forecasting Risk

Forecasting risk involves the uncertainty in predicting future values of a variable or future occurrences of events, affecting planning and decision-making in businesses.

Cash Flow Forecasts

Estimates of the amount of money expected to flow in and out of a business over a specific period, used for budgeting and financial planning purposes.

NPV

Net Present Value is the difference between the current value of cash inflows and the current value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.