Introduction to Discounted Cash Flow Analysis and Financial Functions in Excel

The financial and economic analysis of investment projects is typically carried out using the technique of discounted cash flow (DCF) analysis. This module introduces concepts of discounting and DCF analysis for the derivation of project performance criteria such as net present value (NPV), internal rate of return (IRR) and benefit to cost (B/C) ratios. These concepts and criteria are introduced with respect to a simple example, for which calculations using MicroSoft Excel are demonstrated.

Conceptual Frameworks for SIA Revisited: a cumulative effects study on lead contamination and economic change

This article trials three conceptual frameworks on an Australian case study of a small remote city suffering lead contamination, with cumulative effects from concurrent economic change due to downsizing in the mining industry. It interprets the usefulness of these frameworks, and explores two questions: can they apply to circumstances other than project assessment, and what are their relative merits as guides to SIA? All the frameworks reviewed can be used in non-project and cumulative SIA, although, if they had been used to predict the impacts in our case study, we may easily have been misled as to the resilience of the community. Choosing among these frameworks becomes a matter personal preference: each has different merits.

Tide-induced water table fluctuations in coastal aquifers bounded by rhythmic shorelines

Previous studies on tidal water table dynamics in unconfined coastal aquifers have focused on the inland propagation of oceanic tides in the cross-shore direction based on the assumption of a straight coastline. Here, two-dimensional analytical solutions are derived to study the effects of rhythmic coastlines on tidal water table fluctuations. The computational results demonstrate that the alongshore variations of the coastline can affect the water table behavior significantly, especially in areas near the centers of the headland and embayment. With the coastline shape effects ignored, traditional analytical solutions may lead to large errors in predicting coastal water table fluctuations or in estimating the aquifer's properties based on these signals. The conditions under which the coastline shape needs to be considered are derived from the new analytical solution.

Confined-unconfined flow in a horizontal confined aquifer

Mixed confined and unconfined groundwater flow occurs in a bounded initially dry aquifer when the hydraulic head at the side boundary suddenly rises above the elevation of the aquifer's top boundary. The flow problem as modelled by the Boussinesq equation is non-trivial because of the involvement of two moving boundaries. The transformed equation (based on a similarity transformation) can, however, be dealt with more easily. Here, we present an approximate analytical solution for this flow problem. The approximate solution is compared with an 'exact' numerical solution and found to be a very accurate description for describing the mixed confined and unconfined flow in the confined aquifer. (C) 2002 Elsevier Science B.V. All rights reserved.

A new analytical solution for water table fluctuations in coastal aquifers with sloping beaches

The Boussinesq equation appears as the zeroth-order term in the shallow water flow expansion of the non-linear equation describing the flow of fluid in an unconfined aquifer. One-dimensional models based on the Boussinesq equation have been used to analyse tide-induced water table fluctuations in coastal aquifers. Previous analytical solutions for a sloping beach are based on the perturbation parameter, epsilon(N) = alphaepsilon cot beta (in which beta is the beach slope, alpha is the amplitude parameter and epsilon is the shallow water parameter) and are limited to tan(-1) (alphaepsilon) much less than beta less than or equal to pi/2. In this paper, a new higher-order solution to the non-linear boundary value problem is derived. The results demonstrate the significant influence of the higher-order components and beach slope on the water table fluctuations. The relative difference between the linear solution and the present solution increases as 6 and a increase, and reaches 7% of the linear solution. (C) 2003 Elsevier Ltd. All rights reserved.