Name
Title | ||
|---|---|---|
Derivation and assessment of interest in cash flow calculations for time-cost optimizations in construction project management |
Abstract | ||
|---|---|---|
This paper fills a gap in the financial and project management literature of examining how financing fees, particularly interest, are determined accurately for planning and management of cash flows in construction projects. For planning purposes, most models assign costs at the activity level, as individual transactions at their actual date of occurrence as yet unknown. The interplay of cash outflows from numerous purchases, salaries, and payments for materials, labor, and equipment and regular cash inflows from progress payments by the owner to the contractor create a characteristic 'sawtooth' pattern. However, interest calculations for such continuously changing balances traditionally used averaging approximations that deviate from the exact solution. The derivation for such financing fee is presented and its logarithmic expression is compared with the approximations. It is concluded that more detailed research is merited as to how assuming a linearization used in manifold examples of cash flow analysis matches with practice. |
Year | DOI | Venue |
|---|---|---|
2010 | 10.1109/WSC.2010.5678997 | Winter Simulation Conference |
Keywords | Field | DocType |
construction project management,actual date,regular cash inflow,financing fee,cash outflow,project management literature,activity level,cash flow analysis,cash flow,cash flow calculation,interest calculation,construction project,time-cost optimizations,contractor,costing,economic indicators,planning,mathematical model,approximation theory,financial management,exact solution,construction,project management | Cash flow statement,Simulation,Computer science,Operating cash flow,Cash flow forecasting,Financial management,Cash flow,Project management,Cash,Construction management | Conference |
ISSN | ISBN | Citations |
0891-7736 | 978-1-4244-9864-2 | 2 |
PageRank | References | Authors |
0.51 | 1 | 3 |
Name | Order | Citations | PageRank |
|---|---|---|---|
| Gunnar Lucko | 1 | 17 | 5.04 |
| Richard C. Thompson, Jr. | 2 | 2 | 0.51 |
| Thompson, R.C. | 3 | 2 | 0.51 |