Cash-Flow Analysis

 Some projects, such as those carried out computer and word processing services, produce revenues from an in investment in computer systems. Cash-flow analysis keeps track of accumulated costs and revenues on a regular basis. The "spread sheet" fennel also provides break-even and payback information.

Revenues for the first month in operation January) were $22.000. Operating expenses (including facility preparation) were $51,1.which resulted in a net expenditure of $29,175. Break-even occurs at the of the fOUl1h month (April). The cash flow then was $45, although accumulated cash flow was $ - 43,730. This was the result of excess expenses over revenues, facility preparation costs, and the like. Accumulated cash flow began to turn positive. This was the beginning of the pa,) period. The evaluation methods are summarized in