R-61 [Review Question] I. F=A(F/A, 1%, 6) II. F=A(F/A, 1%, 5)(P/F, 1%, 1) III. F=A(P/A, 1%, 5)(F/P, i%, 6) IV. F=A(F/A, 1%, 4)(F/P, i%, 2)+A(F/P, i%, 1) V. F=5A(F/P, i%, 6) VI. F=5A(F/P, i% 1) i% о 12 3 4 5 How many equation(s) regarding F above is (are) correct? (A) 1 (B) 2 (C) 3 (D) More than 3 A A A A Ans: [B]

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Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.