Developing Cash-Flow Streams
One common way to develop the cash-flow stream for a proposal is to create a work breakdown structure (WBS). The WBS is a hierarchical decomposition that lists all the work associated with the proposal being studied. A common notation for a WBS is to show levels of decomposition by indenting. Developing a WBS is explained more fully in Appendix A. An example WBS for buying and operating a car might be as follows:
| Own and operate a car for transportation | ||
| Buy the car | ||
| Pay the down payment | ||
| Pay the taxes, licensing, and registration fees | ||
| Get insurance on the car | ||
| Make the monthly car-loan payments | ||
| Operate and maintain the car | ||
| Pay the semiannual insurance payments | ||
| Fill the car with gas when needed | ||
| Change the oil every ... | ||
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