Expected Cash Flow Calculator



Expected Cash Flow Calculator helps calculating the Expected Cash Flow a risky asset is expected to yield.

What is Expected Cash Flow?

A risky asset can yield different cash flows, with different probabilities.

Expected Cash Flow is the average cash flow a risky asset is expected yo yield.

The Formula of Expected Cash Flow

The basic formula of the Expected Cash Flow is as follows:

Expected Cash Flow = Σp_i x CF_i = p₁ x CF₁ + p₂ x CF₂ + ... p_n x CF_n

Where:

p_i = probability state i will occur

CF_i = the Cash flaw the risky asset will yield if state i will occurs

The Risky Asset Cash Flows:

Insert all outcomes of the risky asset:

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $