Application of the APV in the financial evaluation of a company in Inovar Auto

The automotive sector is important in Brazil's industrial landscape, as it involves a significant chain of suppliers, distributors, workshops, advertising agencies and insurers in the domestic market, as well as being one of the five largest in the world, generating jobs and bringing development to the country. In this context, this study uses the Adjusted Present Value (APV) method to analyse the cash flow of an automotive company that has recently set up in Brazil and wants to take advantage of the government incentives proposed by the Inovar-Auto programme. The work carried out evaluates the automaker's current cash flow in a stochastic way by modelling variables such as price, demand and interest rate using probability distributions and with the help of the Crystal Ball software, a Microsoft Excel add-in, generating different scenarios using Monte Carlo simulation.

Autorentext

Mechanical engineer from Unesp-Guaratinguetá, Brazil. He took part in scientific initiation projects focussing on biomass cogeneration and mechanical design. He did an exchange at the Technische Universität Braunschweig, Germany, under the 'Science without Borders' programme. He did internships at the Petrobras Thermoelectric Plant and at Volkswagen.

Klappentext

The automotive sector is important in Brazil's industrial landscape, as it involves a significant chain of suppliers, distributors, workshops, advertising agencies and insurers in the domestic market, as well as being one of the five largest in the world, generating jobs and bringing development to the country. In this context, this study uses the Adjusted Present Value (APV) method to analyse the cash flow of an automotive company that has recently set up in Brazil and wants to take advantage of the government incentives proposed by the Inovar-Auto programme. The work carried out evaluates the automaker's current cash flow in a stochastic way by modelling variables such as price, demand and interest rate using probability distributions and with the help of the Crystal Ball software, a Microsoft Excel add-in, generating different scenarios using Monte Carlo simulation.