The will of a wealthy philanthropist left 5M to establish a perpetual charitable foundation. The foundation trustees decided to spend 1.2M to provide facilities immediately and to provide 100,000.00 of capital replacement at the end of each 5-year period. If the invested funds earned 12% per annum, what would be the year-end amount available in perpetuity from the endowment for charitable purpose

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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.