• 1. Introduction

    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).


    NPV image


    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.
    2. Net Cash Flows: Basics