Welcome to the module "Project Cash Flows"! This module shows how to estimate the relevant cash flows of a project, the so-called incremental net cash flows (NCF).
The main learning goals of this module are:
- Know what the Net Cash Flow (NCF) is and we can estimate the NCF of any investment decision.
- Learn how to incorporate interactions with other projects in the computation of the NCF.
- Understand that only the cash flows matter that are caused by a specific capital budgeting decision.
- Know how to treat inflation consistently in project valuation.
- Understand how non-financial goals such as environmental, social, and governance (ESG) factors can be included in project valuation using an Adjusted Present Value (APV) approach.