Corporate Finance
Cash flow refers to the movement of money into and out of a business over a specific period. It's essential for assessing a company's liquidity, solvency, and overall financial health, as it indicates how well a company can generate cash to fund its operations and investments. Understanding cash flow is crucial when evaluating the net present value of an investment, as it provides insight into future cash inflows and outflows that impact profitability and decision-making.
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