Chapter 5 Discounted Cash Flow Valuation：5章现金流量折现法.docVIP

Chapter 12: Cash Flow Estimation and Risk Analysis I. Identifying the Relevant Cash Flows A. Project cash flow versus accounting income - Cash flow ? net income or profit: Projects should be judged on their effect on cash flows. Net income considers accounting conventions and financing which are unrelated to a project. - Net income can be adjusted for these non-cash items to find the cash flow for a firm. (Statement of Cash Flows) B. Rules to Follow: 1. Consider only the cash flows that occur as a direct result of accepting the project. - Ignore sunk costs. - Consider the o