| Title |
Forecasting Cash Flow by Considering Risk Factors in the Real Estate Development Project |
| Authors |
Yoon Sung-Chan ; Yun Seok-Heon ; Paek Joon-Hong |
| Keywords |
Cash Flow ; Uncertainty ; Risk ; Monte Carlo Simulation ; Sensitivity Analysis |
| Abstract |
Forecasting cash flow is very important but is difficult to do in the real estate development project. And an expected value which was forecasted on the early stage is likely to fluctuate due to uncertainties around the project. Therefore it is better to forecast cash flow by using a probabilistic approach which reflects many risky uncertainties than a deterministic approach. Through such a probabilistic approach, SPC(Special Purpose Company) can cope with cash flow fluctuation and set up a financial plan. |