METHODICAL APPROACH TO COMPLEX INVESTMENT ANALYSIS OF CASH FLOWS ON THE EXAMPLE OF THE FLEET REPLENISHMENT PROJECT
Abstract
The purpose of the article is to develop a methodical approach to complex investment analysis of cash flows on the example of shipping investment. This is especially relevant for projects in the shipping industry with a significant capital costs, a high share of debt financing, a low profitability and a high risk. The study used such scientific methods as financial modelling, analysis and synthesis of results, logic and analytical methods. Authors have developed the approach to investment analysis of cash flows for the shipbuilding project, which includes five stages. At the first stage the structure of investment are determined, taking into account ship type and size and building terms. The second stage involves construction the three statements model for forecasting of financial indicators. At the third stage assessment of profitability and liquidity were fulfilled. At the fourth stage security cover ratios and average breakeven were analysed. The fifth stage is devoted to risk assessment with using techniques of sensitivity and scenario analysis.
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