Cash Flow Diagrams

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Cash Flow Diagram - Loan Transaction

• upward arrows - positive cash flow (receiving the loan)
• downward arrows - negative cash flow (pay off)

The Present Value of the cash flows can be calculated by multiplying each cash flow with the Discount Rate.

Cash Flow Diagram - Investment Transaction

• upward arrows - positive cash flows (pay back)
• downward arrows - negative cash flow (investing)

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Related Topics

• Economics - Engineering economic concepts - cash flow diagrams, discount rate, internal rate of return - IRR, income taxes, inflation

Related Documents

• Compound Interest Tables - Compound interest tables - Interest ranging 0.25 - 60%
• Discount Rate - The Present Value of future money
• Discrete Compounding Formulas - Discrete compounding formulas with discrete payments
• Interest Formulas - Single cash flow formulas
• Interest Rate - The cost of money
• Internal Rate of Return - IRR - Internal Rate of Return - IRR - the project break-even interest rate
• Net Present Worth - NPW - of a Stream of Payments - Net Present Worth - NPW - or Value of a stream of payments