August 2012
Beginner
496 pages
16h 52m
English
In order to ascertain whether or not a project finance formula can be applied for a given initiative, an advisor builds a financial model. The technical/industrial, legal, and insurance considerations are compiled, collated, and translated into numbers. Some are obtained from objective data, and others are computed within the framework of a precise set of assumptions. The advisor’s aim is to come up with estimates on cash flows, profit and loss, and the balance sheet, along with a series of ratios based on the same forecasts. The projected cash flow calculation is vital for valuing the ability of the initiative to generate enough cash to cover the debt service and to ...
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