Statistical Methods Applied to the Financial Analysis of a Publicly Funded Investment Project
Banica Ramona Mihaela
Abstract
Open-access reader
Banica Ramona Mihaela
Abstract
Open-access reader
The article presents the elaboration method of financial analysis for an investment project financed through irredeemable public funds. Taking into account the economic and financial context of the company and before the analysis of risk related to the implementation of the project, the financial analysis aims at offering evaluators the necessary information for deciding upon the opportunities for funding the investment, according to the principles and rules from the solicitor's guide. The data are presented starting from the synthesis of the economic and financial situation evolution of the company and of its performance indicators for the most recent three years. The cash flows that determine the net discounted value and the internal profitability rate, important indicators in the evaluation process, were established based on the forecasts obtained. Also, the risks, determined with the help of statistical methods, were identified in the sensitivity analysis by defining the critical variables that might influence these indicators.
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The article presents the elaboration method of financial analysis for an investment project financed through irredeemable public funds. Taking into account the economic and financial context of the company and before the analysis of risk related to the implementation of the project, the financial analysis aims at offering evaluators the necessary information for deciding upon the opportunities for funding the investment, according to the principles and rules from the solicitor's guide. The data are presented starting from the synthesis of the economic and financial situation evolution of the company and of its performance indicators for the most recent three years. The cash flows that determine the net discounted value and the internal profitability rate, important indicators in the evaluation process, were established based on the forecasts obtained. Also, the risks, determined with the help of statistical methods, were identified in the sensitivity analysis by defining the critical variables that might influence these indicators.
Key concepts: Profitability index, Financial analysis, Finance, Context (archaeology), Investment (military), Net present value, Cash flow, Business