A cash-flow diagram is a financial tool used to represent the cashflows associated with a

security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...

, "project", or business. As per the graphics, cash flow diagrams are widely used in structuring and analyzing securities, particularly swaps. They may also be used to represent payment schedules for bonds,

mortgages A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

and other types of loans. In the context of business, and

engineering economics ''For the application of engineering economics in the practice of civil engineering see Engineering economics (Civil Engineering).'' Engineering economics, previously known as engineering economy, is a subset of economics concerned with the us ...

, "Instrumental in tech learning"
/ref> these are used by

management accountant In management accounting or managerial accounting, managers use accounting information in decision-making and to assist in the management and performance of their control functions. Definition One simple definition of management accounting is t ...

s and

engineer Engineers, as practitioners of engineering, are professionals who invent, design, analyze, build and test machines, complex systems, structures, gadgets and materials to fulfill functional objectives and requirements while considering the l ...

s, to represent the cash-transactions which will take place over the course of a given project. Transactions can include initial investments,

maintenance Maintenance may refer to: Biological science * Maintenance of an organism * Maintenance respiration Non-technical maintenance * Alimony, also called ''maintenance'' in British English * Champerty and maintenance, two related legal doctrine ...

costs, projected earnings or savings resulting from the project, as well as

salvage Salvage may refer to: * Marine salvage, the process of rescuing a ship, its cargo and sometimes the crew from peril * Water salvage, rescuing people from floods. * Salvage tug, a type of tugboat used to rescue or salvage ships which are in dis ...

and resale value of equipment at the end of the project. These diagrams - and the associated modelling - are then used to determine a

break-even point The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs h ...

( "cash flow neutrality"), or to further, and more generally, analyze operations and profitability. See

cashflow forecast Cash flow forecasting is the process of obtaining an estimate or forecast of a company's future financial position; the cash flow forecast is typically based on anticipated payments and receivables. See Financial forecast for general discussion ...

and

operating cash flow In financial accounting, operating cash flow (OCF), cash flow provided by operations, cash flow from operating activities (CFO) or free cash flow from operations (FCFO), refers to the amount of cash a company generates from the revenues it brings i ...

References

Business economics Cash flow Management cybernetics Swaps (finance) {{finance-stub