(1) the estimates of revenue and expenditure of the project by an assumption. As follows:(1.1) the only consideration cash and cash pay-per year (excl. depreciation reserves and accounting entries, etc.).(1.2) comparing cash flows. The difference of cost and return of the return of the case with the projects.(1.3) the cash flow considerations, including the project will need to take into consideration the financial changes over time. By calculating the present value of cash flows in the future. (Financial Discount Rate) Which reflect the opportunity cost of funds, "the payoff is expected to receive the funds to invest in other projects.
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