Essentially, you can use this software for most any type of cash flow that is based on sales of units over a finite period of time.
There are five steps to complete a unit sales analysis:
- Identify and develop retail values for the various units of inventory.
- Determine how long to will take to sell the inventory.
- Determine the appropriate cash flow frequency: Annual, Semi-Annual, Quarterly or Monthly.
- Identify and develop project expenses, site and improvement costs, and the appropriate timing of the expenditures.
- Develop the appropriate discount rate and convert the net cash flows to a present value.