Financial models and decisions
Read a financial result
Interpret cash flow, NPV, IRR and payback together with their scope and evidence.
Start with scope
- Incremental case or whole asset.
- Real or nominal money and valuation date.
- Pre-tax or post-tax; levered or unlevered.
- Existing PV revenue included or excluded.
- Ownership, lease and pass-through assumptions.
Use more than one metric
NPV measures value at the stated discount rate. IRR can be absent or non-unique for unusual cash-flow signs. Payback ignores later cash flows. Review the annual cash-flow table, sensitivities and evidence gaps alongside headline metrics.
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