Answer to Question #80207 in Finance for Like Heron

Question #80207
what is the purpose of the cash flow projection?
Expert's answer
Every financial plan or project needs financing. Cash flow in the project shows how much money will come in predictions in the future and how much we are going to spend. In order to balance the incomes and payments, a cash flow project is compiled. The main purpose of cash flow in the project: the sum of cash receipts must be more than the sum of cash payments in the future.
It should be said that a lot of available money is not good. After all, it is important to invest them into the old or a new business. Just cash flow gives us signals that it will be necessary to look for a future way of investing free money

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