imported>Doug Williamson |
imported>Administrator |
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| 1. ''Cash flows - discounted cash flow analysis.''
| | A term financing arrangement, usually on a limited recourse basis, under which funds are provided for a specified project by banks against the security of the project cash flows. |
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| The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.
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| 2. ''Cash flows - discounted cash flow analysis - qualitative & strategic analysis - real options.''
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| Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.
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| Also known as ''Project analysis.''
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| '''Points to note'''
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| Note for both definitions above that ''projects'' are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.
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| As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
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| It is only worthwhile devoting time and effort in formal project appraisal for projects involving material amounts of expenditure.
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| == See also == | | == See also == |
| * [[5Ps of marketing]] | | * [[Recourse]] |
| * [[Discounted cash flow]]
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| * [[Influencing skills]]
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| * [[Payback]]
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| * [[Real option]]
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| * [[Real options valuation]]
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| * [[Sunk costs]]
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| === Other resources ===
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| * [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure - knowing our options, The Treasurer]]
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| [[Category:Financial_management]]
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| [[Category:Planning_and_projects]]
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| [[Category:Corporate_finance]]
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| [[Category:Manage_risks]]
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