Cash Flow Diagrams
The future value of money.
Cash Flow Diagram  Loan Transaction
A loan transaction starts with a positive cash flow when the loan is received  and continuous with negative cash flows for the pay offs.
 upward arrows  positive cash flow (receiving the loan)
 downward arrows  negative cash flow (pay off)
The Present Value of the cash flows can be calculated by multiplying each cash flow with a Discount Rate.
Cash Flow Diagram  Investment Transaction
An investment transaction starts with a negative cash flow when the investment is done  and continuous with positive cash flows when receiving the pay backs.
 upward arrows  positive cash flows (pay back)
 downward arrows  negative cash flow (investing)
Related Topics

Economics
Engineering economics  cash flow diagrams, present value, discount rates, internal rates of return  IRR, income taxes, inflation.
Related Documents

Bid  Work Flow Template
A bid work flow template  Online with Google Docs. 
Compound Interest Tables
Compound interest tables  interests rates 0.25  60%. 
Contract Types
Commonly used engineering and construction contracts. 
Discrete Compounding Cash Flow Formulas
Discrete payments compounding equations and online calculators . 
Interest Formulas
Future value of single cash flow. 
Interest Rate
Interest rate is the cost of money. 
Internal Rate of Return  IRR
Internal Rate of Return (IRR)  the breakeven interest rate. 
Net Present Worth (NPW) of a Cash Stream
The value of a stream of payments is called the Net Present Worth (NPW). 
Present Value
The value of money in the future is the Present Value. 
Uniformat
The ASTM E1557 UNIFORMAT II Standard. 
Value Engineering
Improved value by enhanced function.