Estimating Cash Flows for Project Appraisal and Firm Valuation
37 Pages Posted: 23 Feb 2010 Last revised: 19 Apr 2015
Date Written: February 23, 2010
The Spanish version of this paper can be found at: http://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.
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
Suggested Citation: Suggested Citation