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Project Cashflow Estimation
Project Cashflow Estimation
Aditya Jadhav
TAPMI
Incremental Cashflows
• To be completely ignored
Financing Costs
• Financing costs (both interest and cost of equity) to be excluded from
estimation of project cashflows.
Cash-flow from selling the asset at Market Value + Tax Gain (Loss)
Depreciation
• Depreciation is a non-tax expense