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Project Cash Flow Diagrams

Page history last edited by Simon Hodgson 13 years, 6 months ago

Project Cash Flow Diagrams

Project cash flow diagrams are used as a tool to visualize the costs of an investment. For cash flow diagrams the x-axis is time and the y-axis is the money that is made or lost during a time period.  Typically money that is being invested or paid out are drawn pointing down from the time axis and money that is being returned is drawn pointing up.  Below is a basic example of a cash flow diagram.

 

A cash flow diagram for a project with a capital cost of $24,000, a fixed annuity of $3,500, and a salvage value of $1,250.

 

 

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