THE BASE ALTERNATIVE: CASH FLOWS
While the engineers and site experts do the asset mapping exercise described in the previous chapter, the controllers gather the EBITDA split data according to a certain structure. This structure is different from industry to industry and needs to be set up to enable future simulations. These cash flows are not only per site; they are also per each site’s major production asset where applicable. There are two categories:
1. Production volumes, pricing, and variable costs
2. FTEs/headcount and remaining fixed costs such as maintenance and overhead/selling, general, and administrative (SG&A)
VARIABLE CASH FLOWS ...
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