Future cash flows play a crucial role in calculating the Internal Rate of Return (IRR). The IRR is a profitability metric that considers the initial investment, future cash flows, and the holding period of an investment. It uses future cash flows to determine the break-even point, which is when revenues equal costs. Therefore, future cash flows are essential in evaluating a project's performance and comparing projects with similar risk profiles.
Are you looking to determine which investment opportunities are best for your company, especially wh...
Download model