Cash Flow

Simply put, cash flow is an estimate of the cash inflows less the cash outflows that are generated by a Strategic Alternative in a specific period of time.

Cash in

Less

Cash out

Cash flow

It is important to include only cash flows associated with a Strategic Alternative in the analysis. At a high level, cash flows can be classified into three categories: 1) benefits, 2) costs, and, 3) noncash items.

Definition	Source
Cash in	Benefits
Less	Less
Cash out	Costs
Plus	Plus
Noncash items	Depreciation, amortization, and depletion
Cash flow	Cash flow