Ppt on cash flow management

REAL OPTIONS The Options on Real Assets. PROJECT APPRAISAL - DCF Evaluation method of capital budgeting exercise by discounting the cash flows to find.

, greater reliability of input estimates used, or use of lower discount rate as uncertainties of cash flows reduce as time progresses. Financial Management II Rajiv Srivastava OPTION TO EXPAND Option to expand refers to the managerial flexibility to increase /tradability of real options exercise not being instantaneous problems of estimating the volatility of the cash flows and inability to clearly define the option. Financial Management II Rajiv Srivastava BASIC OPTIONS - CALL & PUT An OPTION is a right but/


11 - 1 ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton Chapter 11 Capital Budgeting.

capital markets. Money can be borrowed or loaned at the same interest rate. Predicted cash flows occur timely. ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton 11 - 12 Capital Budgeting Decisions If the /the monetary unit. Simply put, one has to factor in inflation in estimating future cash flows ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton 11 - 38 Learning Objective 8 Use the payback/


Andrew Graham Queens University School of Policy Studies

of the size of the organization, demands that the organization regularly review its financial situation Financial Statements/Cash Forecasts/ Financial Report/Review of Performance Reports are different names for such a process From Cash Flow to Cash Forecasting: Financial Statements From Cash Flow to Cash Forecasting: Financial Statements Cash Management requires a mix of purely financial data, garnered from accounting systems and statements of managerial intention along with input/


B a c kn e x t h o m e Thomas H. Beechy Schulich School of Business, York University Joan E. D. Conrod Faculty of Management, Dalhousie University PowerPoint.

Copyright  1998 McGraw-Hill Ryerson Limited, Canada Effect of Accounting Policy Choices on the Cash Flow Statement “cash doesn’t lie”.. n One of the reasons that users like to see the cash flow statement is that “cash doesn’t lie”.. no impact on the underlying cash flow n Accounting policy decisions and management’s measurement estimates can significantly affect net income, but they will have no impact on/


Managing Non-Interest Income & Non-Interest Expense

companies and make other investments, but usually have a longer investment horizon than hedge funds when entering transactions. Fund managers earn a management fee plus a percentage (usually 20 percent) of profits in excess of some minimum rate of return. The /Rates Terms Present Value = PV The value today of a single future cash flow or series of cash flows Future Value = FV The amount to which a single cash flow or series of cash flows will grow over a given period of time when compounded at a given/


Understanding Financial Statements, Taxes, and Cash Flows

the basic Content and Format of: Income statement, Balance sheet, and Cash flow statement Why Study Financial Statements? Analyzing a firm’s financial statement can help managers carry out three important tasks: Assess current performance through financial statement analysis,/ of dividends. H.J. Boswell, Inc. Statement of Cash Flows Checkpoint 3.3 Interpreting the Statement of Cash Flow You are in your second rotation in the management training program at a regional brokerage firm and your supervisor calls/


Cash Flow and Financial Planning

uses of pro forma statements Analyzing the Firm’s Cash Flow Cash flow (as opposed to accounting “profits”) is the primary focus of the financial manager (not cash charges) • An important factor affecting cash flow is depreciation. • From an accounting perspective, cash flow is summarized in a firm’s statement of cash flows. • From a financial perspective, firms often focus on both operating cash flow, which is used in managerial decision-making, and free/


1 Equity Instruments: Part I Discounted Cash Flow Valuation B40.3331 Aswath Damodaran.

% of Revenue3.00%0.00%8.23% 104 Dividends and Cash Flows to Equity In the strictest sense, the only cash flow that an investor will receive from an equity investment in a publicly traded firm is the dividend that will be paid on the stock. Actual dividends, however, are set by the managers of the firm and may be much lower than the potential/


Financial Reporting for Derivatives and Risk Management Activities Thomas J. Linsmeier University of Illinois AAA Annual Meeting August 16, 1998.

of 6.75% X Notional Principal “Plain-Vanilla” Interest Rate Swap 10 Importance of Forwards, Futures, Swaps, and Options zInstruments that involve the exchange of cash flows zCan be used to alter existing cash flows zComprise the basic risk management tools 11 Hybrid Instruments: Embedded Derivatives zSimple derivatives are the fundamental building blocks of these complex structures zStructured note: Note with embedded option or swap/


Financial management: Lecture 2 Financial markets and review of some concepts Some important concepts.

A “project” is a term that is used to describe the following activity : spend some money today receive cash flows in the future A stylized way to draw project cash flows is as follows: Initial investment (negative cash flows) Expected cash flows in year one (probably positive) Expected cash flows in year two (probably positive) Financial management: Lecture 2 Examples of projects An entrepreneur starts a company: initial investment is negative/


Chapter 13 Cash Flow Budgeting

Chapter 13 Cash Flow Budgeting Farm Management Chapter 13 Cash Flow Budgeting Chapter Outline Features of a Cash Flow Budget Constructing a Cash Flow Budget Uses for a Cash Flow Budget Monitoring Actual Cash Flows Investment Analysis Using a Cash Flow Budget farm management chapter 13 Chapter Objectives To identify cash flow budgeting as a tool for decision making and analysis To understand the structure and components of a cash flow budget To illustrate the procedure for completing a cash flow budget To/


©2005 Prentice Hall Business Publishing, Introduction to Management Accounting 13/e, Horngren/Sundem/Stratton 11 - 1 Copyright © 2014 Pearson Education,

Education, Inc. publishing as Prentice Hall 11 - 45 Post Audit Investment expenditures are on time and within budget. Comparing actual versus predicted cash flows. Improving future predictions of cash flows. Evaluating the continuation of the project. ©2005 Prentice Hall Business Publishing, Introduction to Management Accounting 13/e, Horngren/Sundem/Stratton 11 - 46 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 11 - 46 Capital Budgeting/


International Cash Management 21 Chapter South-Western/Thomson Learning © 2003.

maintain adequate liquidity without substantial cash balances. Cash Flow Analysis: Subsidiary Perspective C21 - 8 Centralized Cash Management While each subsidiary is managing its own working capital, a centralized cash management group is needed to monitor, and possibly manage, the parent- subsidiary and intersubsidiary cash flows. International cash management can be segmented into two functions: ¤ optimizing cash flow movements, and ¤ investing excess cash. C21 - 9 Cash Flow of the Overall MNC Subsidiary/


Cash Management: Part 2: From a Cash Flow Plan to Process Governance Andrew Graham Queens University School of Policy Studies.

Governance Andrew Graham Queens University School of Policy Studies Developing a Cash Flow Plan for the Responsibility Centre In-year cash management requires a sense of how funds will flow or be expended Eliminate non-cash and accruals Do Not Just Divide by 12! Developing a Cash Flow Plan for the Responsibility Centre Generally managers are expected to prepare cash flow plans based on: –Historical data –Their program plans Developing a/


Click to edit Master title style Financial Management FOR Non-Financial Entrepreneurs/Managers nwoscore.org.

minus expenses over a period of time. PROFIT CASH FLOW versus PROFIT CASH FLOW nwoscore.org WHEN the movement of cash takes place over a period of time Revenues minus expenses over a period of time PROFIT CASH FLOW versus PROFIT CASH FLOW Making a Profit is nice—CASH FLOW is necessary CASH FLOW Management is key to Business Success!!! nwoscore.org Cash Flow PROFIT nwoscore.org  Non-Cash Expenses Depreciation—Fixed Assets Amortization—Software Goodwill  Change/


Cash Flow Statement This module provides an introduction to the cash flow statement, one of the essential financial statements. We’ll show how to create.

to mergers and acquisitions. Whole Foods, Inc. Cash Flow Statement (Investing Activities) $Millions Capital Expenditures (100) Investments 28 Other Cash Flows from Investing (179) Total Cash Flow from Investing Activities (251) MBTN | Management by the Numbers Cash Flow from Investing Activities Cash Flow from Financing Activities Cash Flow from Investing Activities Last is cash flow from financing activities (CFF). Whole Foods, Inc. Cash Flow Statement (Financing Activities) $Millions Dividends Paid (43/


Aswath Damodaran1 Valuation: Part I Discounted Cash Flow Valuation B40.3331 Aswath Damodaran.

Revenue3.00%0.00%8.23% Aswath Damodaran118 Dividends and Cash Flows to Equity In the strictest sense, the only cash flow that an investor will receive from an equity investment in a publicly traded firm is the dividend that will be paid on the stock. Actual dividends, however, are set by the managers of the firm and may be much lower than the potential/


 In-Year Budget Control and Management Andrew Graham Queens University School of Policy Studies MPA 827 2015.

central agency funding – one year only – for technology training. Developing a Cash Flow Plan for the Responsibility Centre  In-year cash management requires a sense of how funds will flow or be expended  Eliminate non-cash accruals 45 Do Not Just Divide by 12! Developing a Cash Flow Plan for the Responsibility Centre  Generally managers are expected to prepare cash flow plans based on:  Historical data  Their program plans – the implementation/


Chapter 27: Real Estate Investment Management Part II: Performance Attribution & Evaluation.

on periodic returns, or on time-weighted multi-period returns (TWRRs). But IRR-based performance attribution is arguably more useful for property level management diagnostic purposes, because: At the property level, the investment manager is typically responsible for the major cash flow timing decisions that can significantly effect property level (static portfolio) returns, e.g., leasing decisions, capital expenditure decisions. At the property level/


12.1 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson Education Limited 2009. Created by Gregory Kuhlemeyer. Chapter.

. Calculating the Incremental Cash Flows Initial cash outflowInitial cash outflow – the initial net cash investment. Interim incremental net cash flowsInterim incremental net cash flows – those net cash flows occurring after the initial cash investment but not including the final period’s cash flow. Terminal-year incremental net cash flowsTerminal-year incremental net cash flows – the final period’s net cash flow. 12.19 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson/


1 Grow Your Business! Find Ways to Improve Cash Flow and Profits.

business decisions / forward plans? 5 minutes 20 Understand and Manage Cash Flow What is cash flow? Moving cash in or out of a business including sales revenue receipts and expense transactions Balance of cash received less the amount of cash paid out over a period of time Cash flow can be positive or negative during the period 21 Cash Flow Analysis Generate Cash Flow reports at least monthly with your accounting software Compare your/


Charter School Fiscal Management Fiscal Year 2010/11 Presented by: Fiscal Crisis and Management Assistance Team (FCMAT) California School Information Services.

and subsequent fiscal year Profit and loss statement Disclosure of all multiyear fiscal obligations, such as loans, lines of credit, etc., for the next three years Cash Flow Management Techniques for Charter Schools The Importance of Cash Flow Cash flow is an important factor in determining the fiscal health of the charter school. Many schools are using their reserves to balance their budget. Using reserves affects future/


Intermediate Financial Accounting I The Income Statement and Statement of Cash Flows.

choice of accounting methods. 5. Income can be manipulated by managers. 6. Off balance sheet liability (thus, off I/S expense). 116 Statement of Cash Flows Statement of Cash Flows: u Providing uses and sources of cash and operating, financing and investing information of a business entity. 117 Statement of Cash Flows (SFAS No. 95) Three Sections: 1. Cash flows from operating activities F N/I ± Adjustments (i.e., depreciation/


Charter School Fiscal Management Spring 2012 Presented by: Fiscal Crisis and Management Assistance Team (FCMAT) California School Information Services.

year Profit and loss statement Disclosure of all multiyear fiscal obligations, such as loans, lines of credit, etc., for the next three years Cash Flow Management Techniques for Charter Schools Presented by: Michelle Plumbtree, Chief Management Analyst, FCMAT The Importance of Cash Flow Cash flow is an important factor in determining the fiscal health of the charter school. Many schools are using their reserves to balance their budget/


Funding the Bank 1 10. The Relationship Between Liquidity Requirements, Cash, and Funding Sources The amount of cash that a bank holds is influenced by.

the required payments to investors are less than the contractual payments of borrowers  Thus, even if some borrowers do not make the required payments, there is sufficient cash flow to continue to pay investors 241 Managing Risk with Loan Sales and Credit Derivatives Credit Enhancements Key terms of credit enhancements potentially include: Reserve accounts  The originating institution creates a trust for losses up/


CAIIB-FM-Module D topics Marginal Costing Marginal Costing Capital Budgeting Capital Budgeting Cash Budget Cash Budget Working Capital Working Capital.

to specific individuals and functions, from top management to down management 6.Marginal costing can help to pinpoint responsibility/cash flows Reasons for using cash flows Economic value of a proposed investment can be ascertained by use of cash flows. Economic value of a proposed investment can be ascertained by use of cash flows. Use of cash flows avoids accounting ambiguities Use of cash flows avoids accounting ambiguities Cash flows approach takes into account the time value of money Cash flows/


Do financial markets have anything to tell us about the design and management of real assets? Using end-of-life oil field management as an example D. G.

An improved decision-making process in a widely-owned corporation is more likely to produce decisions about asset design and management that cause the value, so defined, of the corporate assets to be as large as possible 6 Why cash-flow value is important Managers of a publicly-held corporation have a fiduciary responsibility to maximise the value, so defined, of the assets of/


Management and Cost Accounting, 6 th edition, ISBN 1-84480-028-8 © 2004 Colin Drury MANAGEMENT AND COST ACCOUNTING SIXTH EDITION COLIN DRURY.

=£110 Real CF ’s = Nominal CF ’s = £110 /1.10 1 =£100 (1 +inflation rate) n REAL CASH FLOWS ARE WHAT THE CASH FLOWS WOULD BE IN A WORLD OF NO INFLATION Management and Cost Accounting, 6 th edition, ISBN 1-84480-028-8 © 2004 Colin Drury 14.7 © 2000 Colin Drury Impact of/before NPV becomes negative Total sales can fall by £37 200 p.a.(i.e.12.4%)or 1240 units Note net cash flows are one-third of sales. Management and Cost Accounting, 6 th edition, ISBN 1-84480-028-8 © 2004 Colin Drury 14.14c © 2000 Colin Drury/


331NS-1 FIN 331 in a Nutshell Financial Management I Review.

the most relevant risk in capital budgeting Index 331NS-178 Real Options  When managers can influence the size and risk of a project’s cash flows by taking different actions during the project’s life in response to changing market conditions Alert managers always look for real options in projects Smarter managers try to create real options Index 331NS-179 Types of Real Options  Investment/


MANAGEMENT CERTIFICATE PROGRAM Fisher College of Business The Ohio State University CORPORATE FINANCIAL ANALYSIS II Bernadette A. Minton, PhD.

of shareholders. Managers should accept all projects worth more than their cost. Only projects with a positive NPV “add value” to shareholder wealth. Incremental Cash Flows Only Include all indirect effects Forget sunk costs Include opportunity costs Remember the investment in working capital Beware of allocated overhead costs Discount after-tax cash flows !!! Incremental Cash Flow Cash Flow with Project Cash Flow without Project = – Estimation of Cash Flow Simplified Components of Net Cash Flow REVENUE/


0 Copyright © 2002 by Harcourt, Inc.All rights reserved. CHAPTER 1 An Overview of Financial Management Role of financial management Career opportunities.

Long-term sustainable growth rate in sales Operating expenses Capital expenditures / R&D / Advertising /  Net Working Capital Three Determinants of Cash Flows 6 Copyright © 2002 by Harcourt, Inc.All rights reserved. Factors that Affect the Level and Risk of Cash Flows Decisions made by financial managers: Investment decisions (product lines, production processes, geographic market, use of technology, marketing strategy) Financing decisions (choice of debt policy/


Budgeting Money Management. THE BASIC ECONOMIC PROBLEM:  Limited Resources And  Unlimited Wants And Needs.

ones financial condition. Hint, it is a listing of assets, liabilities and net worth (Assets minus Liabilities). 14. Budget is a plan for managing money during a given period of time and consists of savings and spending. 15. Cash flow statement is simply a measure of the money you receive and the money you spend. 16. Discretionary Income consists of money left over/


Dr Irena JindrichovskaCorporate Finance Management 21 CORPORATE FINANCE MANAGEMENT 2 Master Course VŠFS Fall 2012 Irena Jindřichovská

Group Matrix Axes –horizontal: speed of growth of the market share –vertical: market share Start-up Growth Maturity Decline Each phase requires different approach to financial management – according to generated Cash Flow Dr Irena JindrichovskaCorporate Finance Management 212 Life Cycle of the company II Maturity Low investment need High CF generated Growth High investment need High CF generated Decline Low investment need Low CF/


Entrepreneurship and Small Business Management Chapter 14 Cash Flow and Taxes.

Taxes © 2012 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 2 Entrepreneurship and Small Business Management, 1/e By Steve Mariotti and Caroline Glackin Ch. 14 Performance Objectives Understand the importance of cash flow management. Know the difference between cash and profits. Read a cash flow statement. Create a cash budget. File appropriate business tax returns for your business. © 2012 Pearson Education, Upper Saddle River, NJ/


 2003 Prentice Hall Business Publishing, PowerPoint supplement to Management Accounting, 4rd ed., Atkinson, Kaplan, and Young, prepared by Terry M. Lease,

or period zero Therefore, conventional capital budgeting analysis converts all future cash flows to their equivalent value at time zero  2003 Prentice Hall Business Publishing, PowerPoint supplement to Management Accounting, 4rd ed., Atkinson, Kaplan, and Young, prepared by/ paying $3,200 in income taxes each year  The annual after-tax cash flow will be $16,800  2003 Prentice Hall Business Publishing, PowerPoint supplement to Management Accounting, 4rd ed., Atkinson, Kaplan, and Young, prepared by Terry M/


11 - 1 ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton Chapter 11 Capital Budgeting.

an element for inflation in both the minimum desired rate of return and in the cash-flow predictions. ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton 11 - 39 Learning Objective 8 Use the /, often called a post audit. l The post audit focuses on actual versus predicted cash flows. ©2002 Prentice Hall Business Publishing, Introduction to Management Accounting 12/e, Horngren/Sundem/Stratton 11 - 48 Learning Objective 10 Understand how companies/


Doc. Irena JindrichovskaCorporate Finance Management 21 CORPORATE FINANCE MANAGEMENT 2 Master Course VŠFS Fall 2013 Doc. Ing. Irena Jindřichovská, CSc.

Group Matrix Axes –horizontal: speed of growth of the market share –vertical: market share Start-up Growth Maturity Decline Each phase requires different approach to financial management – according to generated Cash Flow Doc. Irena JindrichovskaCorporate Finance Management 212 Life Cycle of the company II Maturity Low investment need High CF generated Growth High investment need High CF generated Decline Low investment need Low CF/


ACCA Paper F9 – Financial Management Taught Course June 2010 Exams.

to risk, previous funding decisions and organisation size Exam Context Working capital funding policy and the Miller-Orr model were tested for 13 marks in the pilot paper, cash flow management was tested in Q3 a,b June 2009 for 17 marks, preparation of a forecast income statement and statement of financial position was required for 9 marks in Q4b and /


Dr Irena JindrichovskaCorporate Finance Management 21 CORPORATE FINANCE MANAGEMENT 2 Master Course VŠFS Fall 2012 Irena Jindřichovská

Group Matrix Axes –horizontal: speed of growth of the market share –vertical: market share Start-up Growth Maturity Decline Each phase requires different approach to financial management – according to generated Cash Flow Dr Irena JindrichovskaCorporate Finance Management 212 Life Cycle of the company II Maturity Low investment need High CF generated Growth High investment need High CF generated Decline Low investment need Low CF/


Financial management: Lecture 3 Time value of money Some important concepts.

spend some money today receive cash flows in the future A stylized way to draw project cash flows is as follows: Initial investment (negative cash flows) Expected cash flows in year one (probably positive) Expected cash flows in year two (probably positive) Financial management: Lecture 3 Examples of/ rate is 8% over all time horizons. Tell me whether to take the project or not Financial management: Lecture 3 Cash flows diagram in each state Boom economy Normal economy Recession -$10 m $8 m$3 m -$10 m/


1November 18, 2009 Financial Management for Nonprofits.

manage cash flow by examining a cash flow statement and cash flow projection. –The cash flow statement includes total cash received minus total cash spent over a predefined period. –The cash flow project is similar but is an estimate. Cash management looks primarily at actual cash transactions. 19November 18, 2009 Manage Cash The most commonly used format for the cash flow statement is broken down into three sections: –Cash flows from operating activities. –Cash flows from investing activities. –Cash flows/


1 Ch 3 and Ch 15 Corporate Valuation Overview of Financial Statements Overview of Financial Statements Corporate Valuation Corporate Valuation Free Cash.

Ch 15 Corporate Valuation Overview of Financial Statements Overview of Financial Statements Corporate Valuation Corporate Valuation Free Cash Flow (FCF) Free Cash Flow (FCF) Market Value Added (MVA) and Economic Value Added (EVA) Market Value Added (MVA) and Economic Value Added (EVA) Corporate Governance Corporate Governance Entrenched Management Entrenched Management Agency Problem Agency Problem Compensation and Stock Option Compensation and Stock Option 2 Worksheet and Spreadsheet/


1 Part I: Introduction Chapter 1: Overview of Managerial Finance / Financial Management S.B.Khatri - AIM.

investment opportunities that would typically be considered depend in part on the nature of the firm’s business.  Evaluating the size, timing, and risk of future cash flows is the essence of capital budgeting.  The financial manager tries to identify investment opportunities that are worth more to the firm than they cost to acquire. S.B.Khatri - AIM 6 2. Capital Structure Decisions/


Unit 2: Managing a business Finance Using budgets Chapter 16.

problems (group exercise) ProblemPossible solution Credit given to customers of product ADebt factoring Declining sales of product BChange marketing Increase in wagesInvestigate reason Capital costsLease asset Unit 2: Managing a business Finance Solving cash-flow problems (3) Possible answer to problems (individual exercise) ProblemPossible solution Seasonal demandBroaden product range Purchase of assetLease asset Repayment of loanSpread repayment over time Raw material costsResearch other/


Cash Budget. Budgets A budget is a short term financial plan A budget is a short term financial plan CIMA defines a budget as a “plan expressed in money”

inflow and outflow of cash A cash flow forecast is budget dealing with planned inflow and outflow of cash Cash flow forecast Cash flow refers to the movement of cash into and out of a business Cash flow refers to the movement of cash into and out of a business Cash budgets Cash budgets –Seek to predict the flow of cash into and out of the business –Are forecasts enabling businesses to manage cash flow –Are an essential part/


2015-10-05 Liquidity management. 2015-10-052 The basic financial purpose of an enterprise is maximization of its value. Trade credit management should.

, we are able to use the Stone model [B. Stone 1972; T. W. Miller 1996] to determine cash flow management. —However, when we cannot predict future cash inflows and outflows at all, the Miller-Orr model can be used to determine cash flow management. 2015-10-0520 Precautionary Cash Management - Safety Stock Approach Current models for determining cash management, for example Baumol, Beranek, Miller-Orr or Stone models, assign no minimal/


ACCA Paper F9 – Financial Management Taught Course June 2010 Exams.

.5 years ie approx 10% rise in project life needed. Answer to lecture example 1c Even on the project managers cash flows the discounted payback period of 4 years is long relative to the projects life Drawback - ignores the potential volatility of the cash flows All of these techniques would be used in reality as they all offer different insights The insight of one method/


© Tata McGraw-Hill Publishing Company Limited, Financial Management 10-1 Chapter 10 Capital Budgeting II: Additional Aspects.

to be the reinvestment rate. Implicit investment rate Implicit investment rate is the rate at which interim cash flows can be invested. © Tata McGraw-Hill Publishing Company Limited, Financial Management 10-19 Under the IRR method, both projects have a rate of return of 100 per cent/63,600 56,700 10,28,000 7,00,000 3,28,000 © Tata McGraw-Hill Publishing Company Limited, Financial Management 10-41 Table 1: Real Cash Flows YearCFATDeflation factor at 0.05 Real CFAT 1Rs 5,00,0001/(1.05) = 0.952Rs 4,76,000 24,/


Ch. 1 - An Introduction to Financial Management  2002, Prentice Hall, Inc.

offering by a firm that already has stock that is traded in the secondary market. The Corporation and Financial Markets Financial Management Axioms 1) Risk - return trade-off 2) Time value of money 3) Cash - not profits - is king 4) Incremental cash flows count 5) The curse of competitive markets 6) Efficient capital markets 7) The agency problem 8) Taxes bias business decisions 9/


9-1 Copyright © 2016 Pearson Education, Inc. Chapter 9 Cash Flow and Taxes.

are only those expenses and purchases you will actually have to pay during the projected time period. Copyright © 2016 Pearson Education, Inc. 9-13 Creating a Healthy Cash Flow Healthy cash flow management means keeping sufficient cash on hand and available to pay your bills in a timely fashion and in general to have financial resources available to you when you need them. Most entrepreneurs struggle/


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