Notes ACF Open Book PDF
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Nyenrode Business Universiteit
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Summary
These notes cover financial concepts like Opex, Capex, and FCF. They also introduce key terms like EPC, O&M and PPA in project finance. The notes include images and diagrams.
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**\ ** ![](media/image2.png)**\ ** **OPEX:** Recurring costs to maintain daily business operations and production. **CAPEX:** PPE 2020 -- PPE 2019 + DEPRECIATION\ **Net working capital:** Current assets -- Current liabilities **Opex three buckets:** - Cost of goods sold (COGS) - Sales, gen...
**\ ** ![](media/image2.png)**\ ** **OPEX:** Recurring costs to maintain daily business operations and production. **CAPEX:** PPE 2020 -- PPE 2019 + DEPRECIATION\ **Net working capital:** Current assets -- Current liabilities **Opex three buckets:** - Cost of goods sold (COGS) - Sales, general & administrative expense (SG&A) - Depreciation (measures the investment you need to sustain) QUICK AND DIRTY: FCF/WACC = ENTERPRISE VALUE ENTERPRISE VALUE -- NET DEBT = EQUITY VALUE ![](media/image4.png) ![](media/image6.png) ![](media/image8.png) **Gross cash flow** total end of year cash flow generated by the company's operations before all investments. **Free operating cash flow to capita**l total end of year cash flow generated by the company's operations after all investments. So, this is the cash flow entirely available for\ investor payout. ![](media/image10.png)![](media/image12.png) ![](media/image14.png) ![](media/image16.png) ![](media/image18.png) PROJECT FINANCE ![](media/image20.png) ![](media/image22.png)![](media/image24.png) Afbeelding met tekst, schermopname, Lettertype Automatisch gegenereerde beschrijving **EPC**: Engineering, Procurement, and Construction - Refers to the contract with suppliers for equipment performance guarantees during project development. **O&M**: Operations and Maintenance - Represents the agreement for ongoing maintenance and operational support, ensuring plant availability. **PPA**: Power Purchase Agreement - A long-term contract with an energy buyer who agrees to purchase energy at pre-established prices, providing revenue stability. ![Afbeelding met tekst, schermopname, Lettertype, nummer Automatisch gegenereerde beschrijving](media/image26.png)Afbeelding met tekst, schermopname, Lettertype, nummer Automatisch gegenereerde beschrijving