Cash Flow



CASH FLOW

Cash flows are the amount of money that is expected to be generated from an investment. Sometimes these are all positive, and sometimes they are of mixed sign. Wal-Mart can make its significant decision using cash flows. One example is the net present value. Discounted cash flows are used in net present value calculations. Another use is when it is important for Wal-Mart to know the actual cash generated by operations. The idea behind calculating operating cash flow rather than more common measures such as net income or earnings before interest and taxes (EBIT) is that it is ...