In a typical cash flow statement for year 0, do you include the total investment or just the equity investment that one injected into the project?
Also, when calculating the NPV/IRR, does one use the total investment or just the equity part?
E.g. if the equity part (such as through stocks or out-of-pocket cash) is 25% and debt financing is 75% – do you include the whole 100% in year 0 and as part of the NPV calculation or only the 25%?
I have done some extensive financial planning and have been contemplating some bold moves I feel are necessary to position myself to better weather the on-coming storm. I am looking for the opinion of the informed and awakened individuals that are not disillusioned by the recovery talks taking place over the main stream media I have an Awesome Condo right in the middle of Atlanta. Perfect location. One of the best locations in the entire city. I am about a week away from closing on it a …
FDIC loan guarantees, Fannie & Fannie buys of Toxic mortgages, and the TARP is resulting in higher yields, wider GSE Debt spreads and higher mortgage rates, which are signs that The Great Credit Crunch remains in the third inning with that one-year rain delay. The TARP is now on the infield, but covering a swamp full of alligators. Crude oil has reached a handle as I expected. A weekly close below .90 would be the first since October 2003. More bad loans are on the horizon: Credit …
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