Computation Section
Investment Economics
 -Graph Cash Flow

A graphical presentation of the cash flow is obtained by selecting Graph Cash Flow from the menu. The graph dialog shown below allows the user to select a project or comparison for which a cash flow table has already been generated. Buttons are available to show both the Actual cash flow and the Real cash flow. These terms are meaningful with respect to a cash flow that involves inflation. When no inflation is present, only the Actual button is relevant. Clicking the Real button has no effect in this case.

The scale fields are important as they determine the size of the graph. In most cases a Time Scale of 1 will be appropriate. The Cash Scale should be approximately 1/10 of the absolute value of the maximum cash flow. E6 has an initial investment of 2000, so we have chosen the scale of 200.

When the Show Values button is clicked the values of the individual cash amounts are shown on the graph.

  On clicking OK, the add-in creates a new worksheet in the workbook with the name of the desired graph. The graph for E6 is shown below. The graph clearly shows the effects of the increasing operating cost over time.
  In many situations a graphical presentation is very instructive. We illustrate other examples on the remaining pages of this section.

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tree roots

Operations Management / Industrial Engineering
by Paul A. Jensen
Copyright 2004 - All rights reserved

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