Nominal cash flow

Nominal cash flow

A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.

Nominal Cash Flow

Cash flow in absolute terms without adjusting for inflation. In the short term, nominal cash flow equates to real cash flow, but if a cash flow remains that same in a period of high inflation, this results in a real loss for the person or company receiving a cash flow and a real gain for the one giving it.
References in periodicals archive ?
Multiply the EBITDA--which Rust calls "the nominal cash flow of the business"--by a factor between 3.
First, the coupon payment for the conventional Treasury security, C, in the first term of equation (8), is a nominal cash flow that investors expect will compensate them for inflation via the Fisher hypothesis (and potentially for the taxation of inflation under the Darby and Feldstein framework).
The right-hand side of the equation can be interpreted as the present value of all after-tax nominal cash flows discounted by the after-tax nominal yield that provides the bond's price.
The town's solid waste system remains fiscally sound and evidenced in the strong demand for electricity produced by Huntington's waste-to-energy facility, along with nominal cash flow savings from a 1997 refunding of the bonds sold to construct the facility, eliminating the need for general fund subsidy payments.
Moreover, strong demand for electricity produced by Huntington's waste-to-energy facility, along with nominal cash flow savings from a 1997 refunding of the bonds sold to construct the facility, have eliminated the need for general fund subsidy payments.
Reduction of the nominal cash flows (income) will fuel economic slowdown, reduce business activities, tighten the debt problem gradually creating a banking crisis, says the economist.
This makes it a little tougher to match inflation-adjusted cash flows as efficiently as we matched the nominal cash flows above.
A conventional bond's nominal cash flows are known in advance, so the nominal yield-to-maturity is calculated easily.
Thus real cash flows should be discounted at a real discount rate or nominal cash flows should be discounted at a nominal rate.