Although accurately predicting the peaks and valleys of cash flows is one of
the most difficult aspects of cash management, a timely and accurate cash
flow forecast is the basis for a sound investment program. An accurate forecast
can strengthen an investment program by allowing the finance official to
determine how much money will be available for investment, when this
money will become available, and how long it will be available. These considerations
are important because yields are often linked to the size and
maturity of an investment