This video offers a thorough guide to cash flow estimation tailored for business students. It breaks down the process into six manageable categories: initial cash outflow, operating cash flows, change in working capital, working capital recapture, salvage value, and tax shield. Various examples and practice problems of increasing difficulty are provided to illustrate these concepts. Key Takeaways: The video demystifies cash flow estimation by categorizing it into six essential sections, making a complex topic more accessible to students. Two primary methods for addressing cash flow estimation are outlined: constructing a comprehensive cash flow table and calculating the present value of each category individually. The latter approach is favored for its efficiency. Emphasis is placed on grasping the time value of money and applying relevant formulas, such as annuities and perpetuities, to discount future cash flows effectively. The concept of working capital is detailed, stressing its influence on cash reserves and the necessity of viewing it as either a cash inflow or outflow, depending on year-over-year changes. The video features three practice problems with varying difficulty levels to reinforce understanding and showcase practical application of the concepts. It highlights the significance of comprehending the business context surrounding each cash flow category and visualizing them along a timeline for better clarity.