Section outline

  • This section provides the necessary conceptual framework to estimate the Net Cash Flows (NCF) of a project. More specifically, it identifies the key financial information we need to estimate the NCFs, and it presents a step-wise approach for how to get from project revenues to project NCFs. A set of introductory examples help us practice the computation of NCFs, arguably the most important step in any capital budgeting exercise.

    • This section's reading assignment and review questions are listed below.

    • Reading: Net Cash Flow Basics Book
      Students must
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    • Quiz: Net Cash Flow Basics
      Students must
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      Receive a grade