Cash flows: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow . The payments refer to cash outflows and receipts refer to cash inflows. Future Value : The future value is that value of an investment which will be realizable in future. When an amount is invested today at a specific rate, its future value will be more than the present value of money invested. Present Value: Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value, stock and bond pricing . Interest Rates: Interest is the amount charged by a lender from a borrower. It is charged in the form of a percentage of the principal amount loaned known as the Interest Rate To Describe: The dependency of present value and future value formulas upon the cash flows which occur at normal intervals.

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Chapter 4, Problem 11CC

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Cash flows: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow. The payments refer to cash outflows and receipts refer to cash inflows.

Future Value: The future value is that value of an investment which will be realizable in future. When an amount is invested today at a specific rate, its future value will be more than the present value of money invested.

Present Value: Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value, stock and bond pricing.

Interest Rates: Interest is the amount charged by a lender from a borrower. It is charged in the form of a percentage of the principal amount loaned known as the Interest Rate

To Describe: The dependency of present value and future value formulas upon the cash flows which occur at normal intervals.

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