A company is considering a project with the following cash flows: Initial investment of £130,000, Income in 1st year of £0, Income in 2nd year of £80,000, and Income in 3rd year of £120,000 This income is expected to be received half-way through the year. Which of the following gives the INTERNAL RATE OF RETURN for the project? (correct answer = 23.08%, no tables, ONY formulas)

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Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.