Abstract
The primary objective of the investment appraisal methods presented in chapter 4 is to assess the profitability and cost-effectiveness of potential investment projects. After a favorable project has been identified, a financial analysis applying a cashflow model has to follow. The primary objective of financial analysis is to demonstrate that the cashflow is positive and sufficient to repay the loans and deliver the expected returns (dividends) for the investors. Cashflow is defined as the net income (revenues minus expenses) plus depreciation.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG
About this chapter
Cite this chapter
Konstantin, P., Konstantin, M. (2018). Financial and Economic Analysis of Projects. In: Power and Energy Systems Engineering Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-72383-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-72383-9_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-72382-2
Online ISBN: 978-3-319-72383-9
eBook Packages: EnergyEnergy (R0)