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Estimating Cash Flows for Project Appraisal and Firm Valuation

37 Pages Posted: 23 Feb 2010 Last revised: 19 Apr 2015

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Joseph Tham

Duke University - Duke Center for International Development in the Sanford School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: February 23, 2010

Abstract

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

Velez-Pareja, Ignacio and Tham, Joseph, Estimating Cash Flows for Project Appraisal and Firm Valuation (February 23, 2010). Available at SSRN: https://ssrn.com/abstract=1557845 or http://dx.doi.org/10.2139/ssrn.1557845

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

Joseph Tham

Duke University - Duke Center for International Development in the Sanford School of Public Policy ( email )

Box 90312
302, Towerview Dr, Rubenstein Hall, Room 272
Durham, NC 27708
United States
919-613-9234 (Phone)
919-681-0831 (Fax)

HOME PAGE: http://fds.duke.edu/db/Sanford/faculty/thamjx

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