Cash flow is the changes in the amount of cash a business has on hand. Corporations have to prepare an annual cash flow statement that describes these changes, whether they are due to operating ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...