• 2. Net Cash Flows: Basics

    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.

1. Introduction3. Incremental Net Cash Flows