Cash Flow Valuation in Inflation (Slides in Spanish)
11 Pages Posted: 29 Mar 2006
Date Written: January 13, 2007
This is a course material (slides in pdf format) from the book Investment Decision Making. For Firm and Project Valuation. The book is originally in Spanish and is untitled as Decisiones de inversión. Para la valoración financiera de proyectos y empresas.
Chapter 11 studies Project appraisal and firm valuation in an inflationary environment. We show how to value cash flows in an inflationary world: either at constant prices, nominal prices or relative prices. We study the flaws and assumptions of each method and select the appropriate procedure to perform the valuation.
Note: Downloadable document is in Spanish.
Keywords: Inflation, constant prices methodology, nominal prices
JEL Classification: G31
Suggested Citation: Suggested Citation