Cash Flow To The Project

Cash Flow analysis is the profit analysis which use to determined the viability of the planning development project. This analysis is related to the time as time change, the actual value of money change even though the face value remain the same. This meaning that the value of one pound is not same to the value of one pound ten years after even though its designed still same. Therefore, to prevent the loss for the development in the future, cash flow analysis may carry out before making the decision for the development.

To determined the viability of the development project, some of the method can be use which is payback method, Average Rate of Return (ARR), Net Present Value (NPV) and Internal Rate of Return (IRR). Payback method and ARR is the most common method use for small project or business while NPV and IRR is use for big project as to prevent the loss in the future.

For the development in the site at Matilda Street,  the cash flow analysis might be use to decide which is the most feasible development. However, the economic trends may need to taking account while analysis the value of the development.