FIN.6:11 - SoTA-Echoing

The public CFA 2026 capital-investment overview keeps after-tax cash, effects on the rest of the firm, double counting and real options central to appraisal. Damodaran’s Chapter 5, particularly its earnings-to-cash explanation and Illustrations 5.4–5.5, is an older developed treatment of input construction and timing. FIN.6 uses that explanatory work alongside the current professional framing; the historical examples do not supply current tax or market facts.

Compared with discounting a sponsor’s accounting return or supplied “project cash” without recovering its baseline, this construction exposes displaced cash and ending obligations. The worked baseline change shows when a new opportunity changes the decision. Reopen the value when those grounds, realizable flexibility or the matching return changes.