A cash flow projection is an invaluable tool for understanding your business’s progress over a specific time period. It may cover upcoming months, weeks, or even just a few days.

Summing the projected values and subtracting the initial cash outlay of $15,000 produces a net present value for the project of $3,433.70. Since the NPV number is positive, the project is likely ...

5. Use technology. Technology can be a powerful tool for managing cash flow in your small business. Consider implementing a cloud-based accounting system to track income and expenses automatically.

This is usually done by applying a multiple (such as a Price/Earnings ratio) to the last projected year's cash flow. Step 5: Sum the Present Values.