Final answer:
The time horizon is what defines a maximum time period and outlines the cost and revenue elements for cash flow analysis in financial planning.
Step-by-step explanation:
The time horizon defines a maximum time period and establishes a range of cost and revenue elements that need to be considered in developing cash flows. The term is typically used within the context of financial planning and investment analysis.
It's crucial for determining the viability of a project or investment over a specified duration. By setting a time horizon, businesses and investors can estimate potential costs, revenues, and other financial metrics to make informed decisions.