Arbeitspapier
Cash flow valuation in an inflationary world: The case of World Bank for regulated firms
We show that project evaluation should be based on free cash flows at nominal prices. We present a case where the results from the constant price method are biased upwards and there is a risk to accept bad projects. It is a widespread practice to evaluate projects at constant prices. With an example presented in the training on economic regulation of public utilities developed by the World Bank Institute we asses that methodology. We show an overvaluation of 21% when compared with the current prices methodology and using a correct Weighted Average Cost of Capital, WACC.
- Sprache
-
Englisch
- Erschienen in
-
Series: Economic Analysis Working Papers ; No. 2007,12
- Klassifikation
-
Wirtschaft
- Thema
-
Projektbewertung
Inflation
Cash Flow
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Vélez-Pareja, Ignacio
- Ereignis
-
Veröffentlichung
- (wer)
-
Colegio de Economistas de A Coruña
- (wo)
-
A Coruña
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Vélez-Pareja, Ignacio
- Colegio de Economistas de A Coruña
Entstanden
- 2007
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