Showing papers on "Cash flow forecasting published in 1972"

A Note on the Cash-Flow Approach to Valuation and Depreciation of Productive Assets

Abstract: In his famous 1964 article, Paul A. Samuelson [1] presents what he calls “the only sensible definition of depreciation,” namely, the period change in the present value of future cash flows expected to be generated by an asset.

The precautionary demand for cash as a function of a multi‐period cash flow model

Abstract: Summary On the basis of a simple probabilistic model for the generation of the cash flow in a firm, this paper determines the size of the firm's precautionary cash balances as of the beginning of a given planning horizon. The sensitivity of the precautionary cash balances with respect to changes in sales and earnings rate is analysed. Finally, the optimal size of precautionary cash balances, given an opportunity cost of holding cash and a cost of illiquidity, is determined and analysed.