Cash Flow Forecasting Making Cash Flow Smooth and Easy Setting a target One of the best ways to have a good control over cash flow is to have a frequent forecast that is properly maintained. If the owner gets a weekly forecast, he can easily have an outlook for his business for the next year… Read More »
Understanding Cash Flow Management There are many aspects of managing finances of a company. One of these is cash flow management that looks after cash flow, whether inflows or outflows. Understanding this concept is essential to avoid any liquidity crisis in the business. If cash with a business runs low and there is no chance of… Read More »
Investment Management Approaches! Investments need to be managed accordingly in order to make things clear as well as professionally sound. The better is the management of your investment the best are the result from the investments. There are two different kinds of approaches to investment management discussed below:
Portfolio Risk and Reward Investment is always associated with two most important things namely, risks and returns and measuring both of these is always a crucial part of every investment. When it comes to the measurement of the risks and returns you may come across a number of measurement techniques of which Standard Deviation takes… Read More »
NPV vs IRR Every business comes across a number of decisions to be made on a daily basis regarding making investments in different projects. However, making these investments requires a huge analysis and consideration of a number of things.
What is Time Value of Money? Time Value of Money – A Crucial Concept Time value of money is the name which we all hear every now and then in almost all the fields. No matter you talk about investing your money somewhere, saving your money at home, initiating new projects or buying and selling… Read More »
Conventional Cash Flows In Conventional cash flows, cash outflow occurs only once at the start of the project. Example of Conventional Cash Flows: For example, when we take loan from banks, we withdraw whole amount from the account once and pay back to bank in installments till we pay off full principle amount plus any… Read More »
Multiple IRR In real life, you would find many projects that have more cash outflows in addition to initial cash outflow. In such cases there may be more than one discount rate that can result in Zero NPV of those projects and there may also be a case where there is no discount rate that will result in zero… Read More »
Bad Credit History Do you know that a Bad Credit History can hurt your business badly? Bad credit report is a red signal to the businesses that they are exposed to possible bankruptcy. So, here we are going to discuss in detail about what Credit Report is and why is it important for firms to keep… Read More »
IRR Decision Rule IRR is one among a number of capital budgeting techniques which is most commonly used by the investors for evaluating their investment decisions. What is IRR? IRR is the discount rate on which NPV of a project becomes Zero OR we can define IRR as the discount rate at which Present Value… Read More »