Cash-Flow Instances and Cash-Flow Streams
To make a meaningful business decision about any specific proposal, that proposal must be evaluated from a business perspective. The concepts of cash-flow instances and cash-flow streams are used to describe the business perspective of a proposal. A cash-flow instance is a specific amount of money flowing into or out of the organization at a specific time as a direct result of some proposal.
Some examples of cash-flow instances in a software organization include the following:
In a proposal to develop and launch Product X, the payment for new development computers, if new hardware is needed, could be an example of an outgoing cash-flow instance. Money would need to be spent to carry out that proposal. ...
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