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Sagot :
internal rate of return is the term used to describe the discount rate at which the present value of a project's cash inflows will equal the present value of its cash outflows.
Cash flow is the net amount of cash and cash equivalents coming into and going out of a business. Inflows are represented by money received, and outflows are represented by money spent.
Ability to generate positive cash flows, or more specifically, ability to maximize long-term free cash flow, is fundamentally what determines a company's ability to create value for shareholders. After deducting any funds used for capital expenditures, a company's free cash flow (FCF) is the cash it generates from its regular business operations.
The amount of money a company receives and expends is known as its cash flow. Businesses receive revenue from sales and spend that revenue on overhead. Additionally, they might make money from investments, royalties, licensing deals, and interest payments. They might also sell goods on credit with the expectation of receiving the money owed at a later time.
Learn more about cash flows here
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