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Components of Cash Flows

Components of Cash Flows

A typical investment will have three components of cash flows: 1. Initial investment 2. Annual net cash flows 3. Terminal cash flows 1. Initial investment Initial investment is the net cash outlay in the period in which an asset is purchased. A major element of the initial investment is gross outlay or original value of…

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The Lost Sales Paradox

The Lost Sales Paradox

Do you know what your lost sales are costing you every month? Every year? Let me give you two quick examples. It’s what refer to as – The Lost Sales Paradox. Example one – Your average sales are $1000 per order. You have five salespeople on your team and their average close percentage is one…

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