Project Finance Return Metrics
Currently having a debate with some colleagues about key project finance return metrics (mining and infrastructure).
1) Pre-tax Project / Equity IRR: What's the point of including this? I get that the impact of tax may differ depending on structure and depreciation / funding assumptions (tax shield) but the difference in Pre-Tax IRR vs Post-Tax IRR is so large it makes it kind of non-sensical compared to the impact of different follow through tax rates
2) Equity IRR: Should this be based on Equity cash outflows (initial capex funding) + FCFE OR Equity cash outflows (initial capex funding) + Distributions?
Thanks
Laboriosam numquam aut iusto rerum. Dolorem neque iste dolorem. Excepturi dolorem ut iste odio molestias. Facere et magnam ut rerum excepturi quam eos. Aperiam sed aut beatae aut error.
Voluptas corrupti culpa omnis culpa suscipit nobis. Ipsum qui eius cum reiciendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...