Cash flow planning

In the meanwhile, the following should be ready at the project site  

These are followed by balance jobs such as fabricating/fixing prefabricated supports for ducts and pipelines, fabricating and then connecting ducts and piping to process vessels, installation of instrumentation probes and connecting cables, thermal insulation of process vessels and ducts/pipes. 

2 Testing and Mechanical Trial Runs of Moving/Rotating Machineries 

These are necessary prior to commissioning of the plant and are to be done as per procedure instmcted by the inspecting authorities. The following equipments are to be necessarily tested. Fees are to be paid to the statutory authorities for such inspection. This list is only suggestive, and more items can be added by them. 

Pressure vessels, boilers and steam lines, fuel and gas lines, electrical equipments, and plant layout are inspected by Factory Inspectors from safety point of view. 

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The primary financial planning activities supported are investment pltmning, debt pltmning, and budget and cash flow planning and analysis. 

Cash Flow Planning 2.4.1 Typical Start-up Expenses... 

Allows metering of cash flow in a particular implementation year. Cash flow at the time of payment represents the end point of implementation, and the timing of acquisitions can be driven by an annual cash flow plan. 

Prepare cash flow plan in consultation with finance department... 

Keywords exploration, appraisal, feasibility, development planning, production profile, production, abandonment, project economics, cash flow... 

Estimate the cash-flow profile for each alternative. The cash-flow profile should include the costs and revenues if they differ, for the alternative being considered during each period in the planning horizon. For public projects, revenues may be replaced by estimates of benefits for the public as a whole. If revenues can be assumed to be constant for all alternatives, only costs in each period are estimated. Cash-flow profiles should be specific to each alternative. We shall denote revenues for an alternative x in period t as B (t,x), and costs as C (t,x). By convention, cash flows are usually assumed to occur at the end of the time period, and initial expenditures to occur at the beginning of the planning horizon, that IS, m year 0. 

A prerequisite to a corrodable material being used is that it is known to have a useful and reasonably predictable life. Planned, or unplanned downtime costs money and the intervals between planned replacements must be of reasonable duration. In practice, the replacement interval is usually conservative at first and then as experience accumulates, the intervals between planned replacements will usually extend. The main reason for choosing a planned maintenance policy is that on a discounted cash flow (DCF) calculation over the life of the plant, the cost of regular replacements including maintenance labour and downtime is less than the extra initial capital cost of a more durable material. 

A global value plan has to be calculated on the basis of the corporate base currency requiring all values measured in other currencies to be transformed into the basis currency applying exchange rate plans (Delf-mann/Alberts 2000) and also applying interest rates to discount period cash flows to a net present value of the tactical value plan (see also Eppen et al. 1989, p. 520 for an example in the automotive industry). 

All projects involving any significant quantity of LNAPL product recovery require the consideration of economic factors. Careful planning to optimize each project phase can lead to the lowest cost of operation and can occasionally generate positive cash flow, while currently accomplishing aquifer restoration. A basic premise in this discussion is that the recovered LNAPL is suitable for reuse (i.e., as refinery feed stock or fuel for incinerators). Products unsuitable for resale only add to the debit side of the economic equation. 

Whatever problems arise, the farmer needs to plan well ahead, and analyse possible scenarios under conversion that encompass changes, including the use of existing resources, the need for investments, possible changes in yields and total productivity, availability of labour and machinery, accessibility to markets and likely output prices and cash flow. 

The end-of-horizon problem can be resolved in different ways. The simplest option is to accept that network design models with a cash flow objective function cannot properly evaluate investment and restructuring decisions at the end of the planning horizon if their dynamic payback exceeds the remaining periods of the planning horizon. Alternative ap-... 

Pomper (1976, p. 150) explicitly estimated terminal values and integrated them into his model. He calculated the additional cash flows generated by each alternative network configuration in the final period of the planning horizon as compared to the "do-nothing" option. To determine terminal values incremental cash flows were capitalized over a period of 10 years. However, this approach was only possible because all alternative final-period network configurations were known up front due to the backtracking solution procedure employed. 

Business valuation literature provides various other methods for estimating terminal values (for an overview see Koller et al. 2005, pp. 271-290). Unfortunately, as cash flows cannot be allocated to individual decisions in a network design model, a cash flow-based estimate is not possible. Instead, book value or liquidation value at the end of the planning horizon could be used. For example, Fong and Srinivasan (1981, p. 790) include a terminal value function in the unit capacity acquisition cost function. However, they do not specify how this function can be quantified in real-world applications. The major disadvantages are that it is difficult to justify the assumptions underling the terminal value estimate and that restructuring expenditures cannot be properly evaluated. 

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