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The cash flows are the measure of liquidity and the ability of the project to generate cash in the future so it will represent the
The cash flows are the measure of liquidity and the ability of the project to generate cash in the future so it will represent the continuity of the project in the future as it is likely to generate the cash flows.Cash flows are used in the project analysis because the project analysis will be focusing upon the long term sustainability of the project and the ability of the project to generate and value to the company and the cash flows will help in understanding the sustainability of project and the ability of project for adding of value to the company and hence, the cash flows are a better estimate of the project sustainability and ability to generate value to the company.
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