Table Of Contents

	Preface	i
	Acknowledgments	iii
1	Introduction	1
	PART A – THE FUNDAMENTALS
2	Components of a Project Economic Evaluation	8
3	Definition of Project Cash Flows	11
4	Costs Requiring Restructuring	15
5	Method of Restructuring Costs	18
6	Project Cash Flow Profile	21
7	Meaning of Capital	25
8	Recovery of Capital	26
9	Supply and Flow of Capital	28
10	Cost of Capital (COC)	31
11	Base Project	48
12	Net Present Value (NPV)	50
13	Payout	69
14	Internal Rate of Return (IRR)	77
15	Capital Efficiency Index (CEI)	94
16	All Economic Metrics Matter	99
17	Leasing Versus Purchasing	102
18	Cost-of-Service Fees	118
19	De-financing Project Cash Flows	138
20	Acquisition Evaluations	154
21	Inventory Sell Versus Keep	174
22	Special Purpose Present Value Formulas	178

 

	PART B – MORE DETAIL
23	Cost of Capital (COC) – More Detail	195
24	Net Present Value (NPV) – More Detail	201
25	Payout – More Detail	210
26	Internal Rate of Return (IRR) – More Detail	223
27	Capital Efficiency Index (CEI) – More Detail	233
28	All Economic Metrics Matter – More Detail	236
29	Project Cash Flow Profile – More Detail	237
30	Leasing Versus Purchasing – More Detail	243
31	Cost-of-Service Fees – More Detail	256
32	De-financing Project Cash Flows – More Detail	279
33	Acquisition Evaluations – More Detail	287
34	Inventory Sell Versus Keep – More Detail	296
35	Special Purpose PV Formulas – More Detail	298
	Glossary of Acronyms and Formula Variables	302
	Index	309
	About the Author	313