IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Cash Flow Valuation in an Inflactionary World. The Case of World Bank for Regulated Firms

  • Ignacio Vélez-Pareja

    (Politécnico Grancolombiano.)

En el presente artículo demostramos que la evaluación de proyectos debería basarse en free cash flow a precios nominales. Presentamos un caso en el que los resultados obtenidos a partir de la aplicación de un método de precio constante se inclinan hacia arriba, por lo que existe el riesgo de aceptar malos proyectos. Es una práctica extendida evaluar proyectos a un precio constante. Evaluamos esta metodología a través de un ejemplo presentado en un curso de formación sobre regulación económica de las empresas de servicios públicos, desarrollado por el Instituto del Banco Mundial. Identificamos una sobrevaloración del 21% cuando se compara con la metodología de los precios actuales, usando un correcto costo promedio del capital (WACC por sus siglas en inglés).

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.unagaliciamoderna.com/eawp/coldata/upload/velezpareja_regulation.pdf
Download Restriction: no

Article provided by Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna in its journal Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016).

Volume (Year): 6 (2007)
Issue (Month): (November)
Pages: 1-19

as
in new window

Handle: RePEc:eac:articl:12/06
Contact details of provider: Web page: http://www.economistascoruna.org/eawp/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Ignacio Vélez Pareja, 1999. "Project Evaluation in an Inflationary Environment," PROYECCIONES FINANCIERAS Y VALORACION 003391, MASTER CONSULTORES.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eac:articl:12/06. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jose González Seoane)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.