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    Pahajesu's Avatar
    Pahajesu Posts: 2, Reputation: 1
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    #1

    Jun 18, 2009, 04:14 PM
    Finding Operating Cash Flows
    How do I develop the cashflow in order to do the NPV and IRR calculations? I struggle for hours with this and feel really stupid.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Jun 30, 2009, 08:41 PM

    Cash flows for NPV and IRR calculations are computed as follows:
    Operating profit or EBIT
    + Depreciation and amortization
    + Non cash items. e.g. gain or loss on disposal
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Jul 3, 2009, 03:09 AM

    It depends a whole heck of a lot on what the problem is giving you, and could be very simple and could be very complicated. We would actually have to see the entire problem to know. Since we aren't here to do your homework for you, it would also be extremely useful to see the work that you have already attempted on the problem, and then help you from there.
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