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?
Fugit dolores animi ex odit odio nostrum ut. Id excepturi officia dolorem suscipit. Maxime debitis quam veniam. Non debitis pariatur voluptatem rerum esse.
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...