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Estimation of future - Estimationoffuture (MBA. capital...

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Estimation of future   cash flows       is the topic of  financial management  ( MBA ). We know it for evaluating a project before investment with  capital   budgeting . It is the starting point of investment analysis.  We need two type of cash flows. One is cash outflow and other is cash inflow. Cash  outflow is the cost of project. Cash inflow is total revenue from that project. Suppose, I purchased millions machine. It is the cost of project.  Total profit from this project is millions in 5 years. In estimation of future cash flow, we have to estimate whether cost of project is millions or  other and we also have to estimate whether total revenue of project is millions or other.  Now,  question is how to estimate the future cash flows?  So, my aim  to write this content is to explain, how to estimate the amounts  which I have explained in above examples. Following are its two simple steps:
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