FORECASTING CASH FLOWS USING THE ANNUITY TRANSFORMATION METHOD

Abstract

The article deals with the forecasting of cash flows of investment projects by the method of transformation of annuities. The methodology for the formation of cash flows equivalent in terms of the internal rate of return, focusing on transformation points, is described. The sequence of building a basic model and a forecasting model of cash flows is shown. Examples are presented that illustrate the stages of forecasting conventional and unconventional cash flows in the process of implementing investment projects. The feasibility of using the method of transforming annuities to forecast cash flows based on data on actual cash inflows and outflows with the aim of identifying the most rational options for the implementation of investment projects in the face of uncertainty is substantiated.