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Cash inflowCash inflow is the estimate of the value of the project. It is expressed in terms of net cash inflow.Net cash flow is the additional cash a project will generate (sales revenue or cost savings) less annual costs incurred in processes such as the manufacture and sale of a product.The heart of the forecast of net cash inflow is the sales forecast. This may possibly be inaccurate as it is a forecast. This inaccuracy may be magnified if there are also problems with the cost side of net cash inflow.The results of investment appraisal need to be considered in the light of uncertainty in the market, the reliability of the source and the quality of the data involved.
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