The rate at which present value of cash inflows becomes equal to present value of cash outflows
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the rate at which present value of cash in four wheeler false become equal to present values off the cash outfalls outfalls
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CASH IN FLOW
- It means that cash is going into the company.
- E.g : Receipt of a bank loan, Interest on savings and Investments and Shareholder investments etc
CASH OUT FLOW
- It means cash is going out of the company.
- E.g: Purchase of stock, Raw materials or tools, Wages, Rents and Daily operating expenses, Dividend payments, Income tax etc
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