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dc.contributor.authorVélez-Pareja, Ignacioen_US
dc.date.accessioned2007-12-05en_US
dc.date.accessioned2010-12-16T15:55:25Z-
dc.date.available2010-12-16T15:55:25Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/43424-
dc.description.abstractWe show that project evaluation should be based on free cash flows at nominal prices. We present a case where the results from the constant price method are biased upwards and there is a risk to accept bad projects. It is a widespread practice to evaluate projects at constant prices. With an example presented in the training on economic regulation of public utilities developed by the World Bank Institute we asses that methodology. We show an overvaluation of 21% when compared with the current prices methodology and using a correct Weighted Average Cost of Capital, WACC.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesEconomic analysis working papers 2007,12en_US
dc.subject.ddc330en_US
dc.subject.stwProjektbewertungen_US
dc.subject.stwInflationen_US
dc.subject.stwCash Flowen_US
dc.titleCash flow valuation in an inflationary world: The case of World Bank for regulated firmsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn550987193en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Economic Analysis Working Papers: EAWP, Economists Association of La Coruña

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