The Cash Flow element computes the net cash flow, the net present value The present value of a project's future cash flow (i.e., the cash value today of future returns) minus the initial investment. (NPV) and internal rate of return A measure of the profitability of a project, venture or undertaking. It represents the discount rate at which the net present value of the project is equal to zero. (IRR) of a cash flow history. This element is used to model the future return of projects, business ventures, and similar undertakings.
The default icon for the Cash Flow element looks like this:
The property dialog looks like this:
Like all GoldSim elements, you first specify an Element ID and a Description.
Below the Description field, you specify the Currency units you wish to use. GoldSim will list all of the currencies that are in its units database (by default, this is dollars, euros, pounds sterling and yen, and you can easily add any additional currencies).
The details of the Cash Flow element are discussed in the topics below. An example file which illustrates the use of Cash Flow elements (Cashflow.gsm) can be found in the can be found in the Financial Examples folder in your GoldSim directory (accessed by selecting File | Open Example... from the main menu).