Estimating Cash Flows for Project Appraisal and Firm Valuation

Abstract:     
The Spanish version of this paper can be found at http://ssrn.com/abstract=http://papers.ssrn.com/abstract=1996731

This teaching note is devoted to the definition and calculation of cash flows, namely, cash flow to debt, (CFD), cash flow to equity, (CFE), capital cash flow, (CCF), tax savings, (TS) and free cash flow, (FCF). We use the direct and the indirect methods to derive the relevant cash flow profiles for the different stakeholders. These cash flows are the basis for the valuation of a firm or project.

Number of Pages in PDF File: 37

Keywords: Cash Flows, Free Cash Flow, Cash Flow To Equity, Cash Flow To Debt, Capital Cash Flow, Tax Savings

JEL Classification: E47, G12, G31, G30

working papers series