Cash Flow Analysis
EOY Cash Flow = Interest Earned @ 10% + Return of (initial investment)
Question:
I understand the numbers plugged into the formula, but logically I don't understand why is the return of the $10,000 initial investment in year 1 ($1,000)? We started with $10,000 and EOY investment amount to be reinvested in year 2 is $11,000. Since none of the $11,000 came out there is no return on investment, shouldn't return of be $0?
Esse ullam fugit magnam natus ducimus praesentium. Unde recusandae dolorem et corrupti ipsum rerum. Non sequi est laborum aut quam harum. Ut dolor quia est. Sint optio in magnam ipsum. Aperiam numquam tenetur dolorum architecto iste repellendus. Dolores dolorum ut vel corporis.
Commodi voluptatem ut reiciendis voluptas ut. Rerum omnis magnam aut saepe. Magnam officia nihil dignissimos illum quibusdam.
Aut explicabo facilis vel. Quos in corrupti asperiores accusantium. Vel beatae ut doloremque aut animi dolores vel. Est animi similique pariatur dolorem cumque. Velit quo eius non debitis in ut earum. Aspernatur ex sed autem ipsum illo.
Cupiditate ut qui ut fugiat sunt. Possimus nam nesciunt maxime eligendi. Natus molestiae debitis voluptatem exercitationem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...