e3value user guide
For one contract period, we sum all all in-going cash flows of an actor over the contract period and subtract the sum of all out-going cash flows, including investments. If we do this for all periods in a time series, the net present cash flow of a time series is
where p ranges over the periods of the time series.
For example, consider table 7.1. In period 0, an investment is made and no revenues and expenses occur yet. In periods 1, 2 and 3 we have a revenues of f500 and expenses of f100 in each period. This gives a positive net cash flow of f200 at the end of the time series.
| Period | Revenues | Expenses | Investments | Total |
| 0 |
|
| 1,000 | -1,000 |
| 1 | 500 | 100 |
| 400 |
| 2 | 500 | 100 |
| 400 |
| 3 | 500 | 100 |
| 400 |
| Total |
|
|
| 200 |
|
|