You are considering a capital project that requires an initial investment of $ 40,000 , has predicted cash inflows of $15,000 per year for four years , and a salvage value o $ 5,000 . Using the tables above , calculate the project's net present value at a discount rate of 12 percent .   negative $ 9,630 $5,555 $20,740 $ 8,735 $2,375

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Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.