Cash Flow

This example demonstrates the use of the Cash Flow element. The Cash Flow element takes both continuous and discrete cash flows and calculates the net cash flow through time. In addition, the element can calculate the Net Present Value of the cash flows at the start of the simulation (using a specified discount rate) and it can also calculate the internal rate of return.

In this case, a capital expenditure (represented by "Initial_Capital_Cost") occurs at the start of the simulation. Development costs flow continuously over the first two years of the simulation and are adjusted upward by a constant Inflation_Rate over time. Operating costs flow continuously over the remainder of the simulation and are also increased by the Inflation_Rate. Revenues occur on a monthly basis, but only after two years. To model this, the Revenue_Generation event occurs on a regular basis once per month, which then triggers Revenues to occur.

To Open the Model File:

1. Start GoldSim
2. Click on the File and select Open Example...
3. Browse to General Examples --> Financial Examples
4. Select the file called CashFlow.gsm