Net Present Value and Risk Modelling for Projects

Martin Hopkinson

• Publisher: Routledge
• Year: 2017
• Print ISBN: 9781472457967
• eBook ISBN: 9781351915250
• Topic: Business
• Subtopic: Business General
• Index: Business

The Net Present Value (NPV) forecast lies at the heart of the business case on many projects. Martin Hopkinson's guide explains when, why and how NPV models should be built for projects and how this approach can be integrated with the risk management process.

NPV models tend to be used during the earliest phases of a project as the business case is being developed. Typically, these are the stages when uncertainty is at its highest and when the opportunities to influence the project's plan are at their greatest. This book shows how project financial forecasting and risk management principles can be used to both improve NPV forecasts and to shape the project solution into one that is risk-robust.

The text is sufficiently broad to be practicable for first-time users to employ the methods described. But it also contains insights into the process that are likely to be new to the majority of experienced practitioners. All users should find that the models used in this book will help to provide useful templates for exploiting the techniques that are used.

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• List of Figures
• List of Tables
• Preface
• 1 Background to Project Net Present Value and Risk Modelling
• 2 Three Financial Project Modelling Techniques Compared: Undiscounted Cash Flows, Project Net Present Value and Net Present Value Risk Modelling
• 3 Discount Rates, Internal Rate of Return and Payback Periods
• 4 Developing a Net Present Value Model
• 5 Project Risk Management – Themes Relevant to Net Present Value Risk Modelling
• 6 Building Up Detail in a Net Present Value Risk Model
• 7 Risk Estimating
• Appendix: Risk Tools
• References
• Index