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Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 9
First page : ( 235) Last page : ( 250)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00929.3

Project's Cash Flow Forecasting by Probabilistic Approach

Ghyasi Azara, Moosavi Seied Ebrahimb, Tabari Mahdib

aFaculty Member, Allameh Tabataba'i University, Tehran, Iran

bResearcher, System Engineering Research Center, imam Hossain Comprehensive University, Tehran, Iran

Online published on 6 September, 2014.

Abstract

One of the most important issues for project managers is discussion about cost and income of project and generally profit obtaining from project. When a project is implemented in one contract, should had enough attention to difference between cost estimation and contract pricing.

Cash in flow and cash out flow techniques are suitable tools for distinguish this difference. In this research after introduce the project cash flow forecasting problem and its importance we provide a model for solve this issues. The model that provided in planning process divided in two sections: cash in and cash out flows. In context of project cash in two models introduced: progress percentage way and milestone way. Parameters such as uncertainty in activities duration, project start date, cost of activities and uncertainty in percentage of payment by employer and its date and other factor considered in model. Finally presented model is implemented in one EPC project.

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Keywords

Project Cash Flow, Uncertainty condition, Forecasting.

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