Until now single values of IRR are traditionally used to estimate the time value of cash flows. Since uncertainty exists in estimating cost data, the resulting decision may not be reliable. The most commonly cited drawbacks to using the internal rate of return in evaluatton of deterministic cash flow streams is the possibility of multiple conflicting internal rates of return. In this paper we p...

Cash shortage is one of the most dangerous problems that may appear while projects are in progress. Inadequate cash flows force the companies to take short term or long term loans and in some cases companies end up being bankruptcy. In this study the planned and actual cumulative percentages of cash flows and work progress which are represented using S-curves are used as the basis for analyzing...

Resource constrained project scheduling problem is one of the most important issues in project planning and management. The objective function of this problem is to minimize the completion time of a project. When there is budget constraint or high risk for investment, using the criteria such as cash flows is so important. The development of computer systems and processors makes it possible to t...

This paper analyzes a risk averse entrepreneur’s real investment decision under incomplete markets. The entrepreneur smoothes his intertemporal consumption by investing in both a risk-free asset and a risky asset, which allows him to partially hedge against the project cash flow risk. We show that risk aversion lowers both the project value upon investment and the option value of waiting to inv...

From a financial management perspective, the profitability of a construction project is connected to the cash requirements of the project and the ability of a company to procure cash at the right time. Line of credit as a bank credit agreement provides an alternative way of managing the necessary capital and cash flow for the project. Today’s highly competitive business environment necessitates...

The ubiquitous payment problems within construction industry of China are notoriously hard to be resolved, thus lead to a series of impacts to the industry chain. Among of them, the most direct result is affecting the normal operation of contractors negatively. A wealth of research has already discussed reasons of the payment problems by introducing a number of possible improvement strategies. ...

With currently depressed milk prices, many Michigan dairy operations are struggling to meet current cash flow commitments. This article, the first of a series of articles addressing cash flow problems, examines ways to manage debt. The other articles to follow will explore profitability of the Michigan dairy industry, other methods for improving cash flow (including income tax management), unde...

In view of the allocation of cash flow rights and control rights in venture capital firms, a financing contract model is set up by introducing the entrepreneur’s self-owned capital in this paper. This paper analyzes the affecting factors and mechanism to the allocation of cash flow rights and control rights, shows the relationship between cash flow rights and control rights, gives the bargain i...

Purpose The ability to predict cash demand is crucial for the operation of construction companies. Reliable cash flow prediction during the execution phase can help managers to avoid cash shortages and to control project cash flow effectively. Method This paper presents a new inference model, CF-ELSIMT, for cash flow forecasting. The developed CF-ELSIMT utilizes weighted Least Squares Support V...