Learning Outcomes

Upon successful completion of this course, you should be able to:

• Identify the analyses required for detailed project feasibility reports
• Describe the roles of financial managers in cash flow estimation
• Outline the elements of the cash flow stream
• Discuss the guidelines of the basic principles of cash flow estimation
• Solve problems on cash flow estimation for capital budgeting decisions
• Identify the relevant cash flows for replacement decisions
• Explain the biases in cash flow estimation
• Analyze the methods of adjusting cash flows for inflation
• Describe the bias caused by inflation
• Compute the net cash flows for investment proposals