Title of article
Present and future value formulae for uneven cash flow based on the performance of a business
Author/Authors
Ameha Tefera Tessema، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
10
From page
9649
To page
9658
Abstract
Business firmʹs income is not constant or fixed from period to period. Because of this, a firmʹs cash inflow or out flow is uneven. The decision of a firm either to invest or to borrow from creditors based on uneven cash in-flow need to have a future or a present value prediction formula. The problem to find future and present value formulae for uneven cash flow stayed unsolved for long period of time (Pandey, 1999). However, in this paper, I want to show future and present value of uneven cash flow prediction formulae based on the performance rate (Pn) of a business. The firm cash out flow either for investment or for repayment of the borrowed loan growth according to the performance rate (p) of the firm. The Performance rate (Pn) is a percentage by which the current performance of the business exceeds the previous. Therefore, the firm cash out flows either for investment or for repayment of the borrowed loan growth according to the performance rate (p) of the firm.
Keywords
future value formula , performance rate , present value formula , nonperforming loan , Uneven cash flow
Journal title
African Journal of Business Management
Serial Year
2011
Journal title
African Journal of Business Management
Record number
687209
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