Cash Flows Definition oWhen expenditures and receipts are denominated in cash,the net receipts at any time period are termed cash flow,and the series of flows over several periods is termed a cash flow stream.An investment over 4 years might be (-1,0.10,0.10,0.10,1.10) o An investment is defined in terms of its resulting cash flow sequence, namely,the amounts of money that will flow to and from an investor over time. o The investment objective is that of tailoring this cash flow stream to be more desirable than it would be otherwise o Investment science is the application of scientific tools to investments. Time Xi CHEN (chenxi01090bfsu.edu.cn) Investment Science 6/16Cash Flows Definition When expenditures and receipts are denominated in cash, the net receipts at any time period are termed cash flow, and the series of flows over several periods is termed a cash flow stream. An investment over 4 years might be (-1, 0.10, 0.10, 0.10, 1.10). An investment is defined in terms of its resulting cash flow sequence, namely, the amounts of money that will flow to and from an investor over time. The investment objective is that of tailoring this cash flow stream to be more desirable than it would be otherwise. Investment science is the application of scientific tools to investments. Xi CHEN (chenxi0109@bfsu.edu.cn) Investment Science 6 / 16