"payback" - when will I get my money back

"return" - how much do I get per given period

"hurdle" - is this the best investment

revenues, costs, global factors, force majeure

exchange rate, escalation, floating interest rates, insurance, taxes, legislation, US & local CPI, etc.

allocation of risks - what must I do to insulate the business from identified risks?

future value

present value

P(1) = P(0) * ( 1 + i )

REVENUES

EXPENSES

NIBIT (net income before
         interests and taxes)

NIAT (net income after taxes)

SOURCES = NOCF + FUNDING

USES = IncomeTax + Interest
         + Principal + Others

Net Net Cash Flow (NNCF)
         = SOURCES - USES

DSCR = (NNCF + P + I) / (NNCF)

Net Operating Cash Flow
         = Revenues - Cash Costs

Others = Capex
         + (inc/dec) Working Capital
         + EOY Cash Balance

DSCR = Debt Service
            Coverage Ratio

DSR   = Debt Service Reserve
         = (P + I) / 2

Assets = Current Assets
           + Net Physical Plant

Liabilities = Current Liabilities
           + Long Term + Equity
           + Retained Earnings

ASSETS (equals) LIABILITIES

+ IRR - internal rate of return

+ loans and equity

+ net present value of investment

+ owner / lender perspectives

+ justifications

+ owner-financed
    - project IRR

+ owner & lender-financed
    - equity IRR

Why get a loan?

Why will a lender take
       you seriously?

Principal

Interest Payments

What is the net present value of the business in comparison with the equity that I put in?

Owner&Lender
     - available cash flow

Lender
     - Debt Service Coverage Ratio
       (DSCR),
     - Debt Service Reserve (DSR)

Owner
     - IRR, Payback, Hurdle

Downtime = loss of revenues
        cannot be recovered

Seconds = often sell at a Loss

Rejects = simply thrown away

Revenue = direct income
        generation