 | This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Cash-flow diagram" – news · newspapers · books · scholar · JSTOR (April 2008) (Learn how and when to remove this message) |
A cash-flow diagram is a financial tool used to represent the cashflows associated with a security, "project", or business.
As per the graphics, cash flow diagrams are widely used in structuring and analyzing securities, particularly swaps. They may also be used to represent payment schedules for bonds, mortgages and other types of loans.
In the context of business, and engineering economics, these are used by management accountants and engineers, to represent the cash-transactions which will take place over the course of a given project. Transactions can include initial investments, maintenance costs, projected earnings or savings resulting from the project, as well as salvage and resale value of equipment at the end of the project. These diagrams - and the associated modelling - are then used to determine a break-even point ("cash flow neutrality"), or to further, and more generally, analyze operations and profitability. See cashflow forecast and operating cash flow.
See also
References
- "Engineering Economics".
- "Financial Assessment Techniques" (PDF).
- Cash Flows, Interest Rates & the Time Value of Money, Lehigh Valley University Archived July 10, 2007, at the Wayback Machine
- Taking A Moment to Teach Engineering Economy
- "Instrumental in tech learning"
 | This economics-related article is a stub. You can help Misplaced Pages by expanding it. |
| This finance-related article is a stub. You can help Misplaced Pages by expanding it. |