Determine Net present DECISION: Accept or

value: Used in capital Reject project or

Terminal cash budgeting to analyze the
profitability of a projected investment
flows: The end of a
project almost investment or project.
always Determine Incremental
brings additional Cash flow: used to
determine additional
cash flows. Sale of
operating cash flow that
assets an organization receives
Project cash flows: Determine Present from taking on a new
Cash inflow of cash value of cash inflow project
outflow for the near and outflow: used
future to current worth of
a future sum of
money or stream of Additional overhead costs:
A project may generate extra
cash flows
overhead costs, but then again it
Determine Cost of may not. We
investment: Initial should be cautious about
cash inflow assuming that the accountants
Determine allocation of overhead costs
working capital: represents the incremental cash
Terminal cash
flow that would be incurred by
determine if flows: The end of a accepting the project.
additional working project almost
capital is needed always
brings additional
cash flows. Sale of
assets