Cash flow: 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. Equivalent monthly annuity : Equivalent monthly annuity refers the present value of cash flows of the equal amount, paid or receipt for the each month. To Identify: The better option between the two.

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Chapter 8, Problem 30P

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Cash flow: 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.

Equivalent monthly annuity: Equivalent monthly annuity refers the present value of cash flows of the equal amount, paid or receipt for the each month.

To Identify: The better option between the two.

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