TAILIEUCHUNG - Project and Private Benefit-Cost Analysis

To derive private cash flow, we begin by calculating overall project cash private cash flow is the cash flow on the investor’s own funds or ‘equity’. | © Harry Campbell & Richard Brown School of Economics The University of Queensland BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets Ch. 4: Project and Private Benefit-Cost Analysis Private Benefit-Cost Analysis Deriving ‘Project’ and ‘Private’ cash flows: Project cash flow refers to cash flow for the overall project At market prices Irrespective of who gains or loses. Private Cash Flow at market prices Private cash flow refers to cash flow to the individual investor engaged in project. after allowing for loan service costs after payment of profits taxes Deriving Private Cash Flow To derive private cash flow, we begin by calculating overall project cash flow. Debt/financing inflows and outflows to creditors Taxes paid to government We then subtract from the project cash flow: Cash Flow on Equity The private cash flow is the cash flow on the investor’s own funds or ‘equity’. Project cash flow minus debt cash flow = cash flow on equity (before tax). Cash flow on equity is the residual: what is left over after servicing debt. Deriving Project Cash Flow To derive project cash flow we need to be mindful of some important concepts and conventions: Inflation: usual to use constant prices with a real discount rate (otherwise, nominal prices with nominal interest rate). See table . Incremental rather than total cash flow: ‘with project’ less ‘without project’ cash flow. See table . Deriving Project Cash Flow Interest on debt excluded from cost to avoid double counting. Depreciation excluded from cost to avoid double counting. (See table ) Changes in working capital appear under investment costs at the beginning and end of the project. (See table ) Debt Financing Cash Flow To derive debt financing flow, for each period, from the borrower’s perspective, begin with project cash flow, then: Add all loan receipts in each period Subtract all interest payments in each period Subtract all principal repayments in each period Private Cash .

• Quỹ đầu tư
• Cost Analysis
• Private Benefit
• project risk
• project risk analysis
• evaluation of investment projects
• corporate finance
• investment
• Cost Effectiveness analysis
• Cost Benefit Analysis
• Theoretical view of Cost Effectiveness Analysis
• CBA applicability for business
• Cost effectiveness and cost benefit studies
• Management control systems
• Cost volume profit analysis
• Cost accounting
• Fundamentals of cost accounting
• Cost management systems
• Profit variance analysis
• Variance analysis
• Decision making
• Cost concepts and behavior
• Cost estimation
• Fundamentals of product
• Cost versus expenses
• Cost management
• Lecture Accounting
• What the numbers mean
• Cost analysis for control
• Performance reporting
• Standard costs
• Cost analysis for planning
• Joint cost allocation