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The lecture also distinguishes cash inflows and outflows, calculates net cash flow for each period, discusses point and range estimates, and works through a rental-compressor example to construct a cash flow diagram and locate present worth at year 0.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/lecture-4-foundation-of-engineering-economy-cash-flow-present-worth/657238/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/lecture-4-foundation-of-engineering-economy-cash-flow-present-worth/657238.png","ImageObject",300,407,{"name":42,"@type":43},"Anna Hans","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-26",true,{"@type":52,"interactionType":53,"userInteractionCount":30},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What is cash flow in engineering economy, and how is it recorded?","Question",{"text":62,"@type":63},"Cash flow is the sum of money recorded as receipts or disbursements in a project’s financial records. It captures both inflows and outflows across time periods.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How do year-end and end-of-period conventions affect cash flow timing?",{"text":67,"@type":63},"The year-end convention assumes expenses occurring during the year are treated as occurring at the end of the year. The end-of-period assumption places funds flow at the end of a given interest period.",{"name":69,"@type":60,"acceptedAnswer":70},"What is the net cash flow (NCF) for a time period?",{"text":71,"@type":63},"Net cash flow for each time period is computed as cash inflows minus cash outflows (NCF = cash inflows - cash outflows).","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},657238,1793073634,{"code":4,"msg":81,"data":82},"success",[83,87,91,94,99,104,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":92,"slug":93},70,"exam",{"id":95,"doc_module":4,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},5,"Comic",60,"comic",{"id":100,"doc_module":4,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},6,"Technology",50,"technology",{"id":105,"doc_module":4,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},7,"Healthcare",40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":95,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":30,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":110,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":143,"read_time":117},5909892332657,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","University of Diyala  \nEngineering Economy  \nLecture 4  \n3rd Stage  \nCommunication department / Engineering collage  \nLecturer Marwa Mohammed  \nChapter 1  \nFoundation of Engineering Economy  \nCash Flow  \nCash flow is the sum of money recorded as receipts or disbursements in a project’s financial records.  \nA cash flow diagram presents the flow of cash as arrows on a time line scaled to the magnitude of the cash flow, where expenses are down arrows and receipts are up arrows.  \nYear-end convention ~ expenses occurring during the year are assumed to occur at the end of the year.  \nCash Flows: Terms and Estimating  \n• Cash inflows are the receipts, revenues, incomes, and savings generated by project and business activity. A plus sign indicates a cash inflow.  \n• Cash outflows are costs, disbursements, expenses, and taxes caused by projects and business activity. A negative or minus sign indicates a cash outflow.  \n• Net cash flow (NCF)for each time period: Net cash flow = cash inflows-cash outflows  \nNCF = R – D [3]  \n• The end-of-period assumption : funds flow at the end of a given interest period  \nCash Flows: Terms and Estimating  \n• Point estimate : A single value estimate of cash flow element of an alternative  \nCash inflow : income = %150000 per month  \n• Range estimate – min and max values that estimate the cash flow  \ncash flow out : cost in between $2.5 M and $3.2 M  \nCash flow diagrams  \n• Cash flow diagrams visually represent income and expenses over sometime interval.  \n• It is graphical representation of cash flows drawn on the y-axis and a timescale along x-axis.  \nCash flow diagrams  \nCash flow diagrams  \nExample: A rental company spent $2500 on a new air compressor 7 years ago. The annual rental income from the compressor has been $750 . The $100 spent on maintenance the first year has increased each year by $25 . The company plans to sell the compressor at the end of next year for $150 . Construct the cash flow diagram from the company’s perspective and indicate where the present worth now is located.  \nSolution  \nLet now be time t = 0. The incomes and costs for years =7 through 1 (next year) are tabulated below with net cash flow computed using Equation [3] . The net cash flows (one negative, eight positive) are diagrammed in Figure .  \nPresent worth P is located at year 0.","cbCaikyX8NoqARSv","https://ap.wps.com/l/cbCaikyX8NoqARSv","pdf",293132,"English","# Cash Flow\n## Cash flow definitions and diagrams\n## Year-end and end-of-period conventions\n## Cash inflows, outflows, and net cash flow\n## Estimating cash flows: point and range estimates\n## Example: rental company cash flow diagram and present worth","[{\"question\":\"What is cash flow in engineering economy, and how is it recorded?\",\"answer\":\"Cash flow is the sum of money recorded as receipts or disbursements in a project’s financial records. It captures both inflows and outflows across time periods.\"},{\"question\":\"How do year-end and end-of-period conventions affect cash flow timing?\",\"answer\":\"The year-end convention assumes expenses occurring during the year are treated as occurring at the end of the year. The end-of-period assumption places funds flow at the end of a given interest period.\"},{\"question\":\"What is the net cash flow (NCF) for a time period?\",\"answer\":\"Net cash flow for each time period is computed as cash inflows minus cash outflows (NCF = cash inflows - cash outflows).\"}]","Lecture 4 - Foundation of Engineering Economy - Cash Flow - Present Worth | PDF",1792976214]