I would like to know recommendations on literature to learn how to do an economical analysis of a project . From cashflow forecast , funding , risks etc Saving Changes...
Carlos, I've heard about this book from a colleague of mine but haven't personally read it:
“Principles of Corporate Finance” by Richard Brealey, Stewart Myers, and Franklin Allen
It covers time value of money, cost of capital, risk analysis, and project evaluation.
Thanks a lot , the book looks pretty good , I ended up buying it :) Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Carlos de Oliveira
Great question.
Economic analysis is a critical skillset for project managers, especially when assessing viability, funding, and long-term value.
Here’s a structured set of recommendations to deepen your knowledge:
Books (Core Knowledge):
- "Investment Science" – David G. Luenberger → Strong on NPV, IRR, cash flow analysis, and real options.
- "Project Economics and Decision Analysis" – M.A. Mian → Comprehensive, including uncertainty, risk-adjusted models, and capital budgeting.
- "Project Finance in Theory and Practice" – Stefano Gatti → Excellent for infrastructure, PPPs, and structured funding mechanisms.
- "Financial Modeling for Project Finance" – Penelope Lynch → Hands-on modeling in Excel for forecasting and risk evaluation.
PMI Standards & Practice Guides:
- Practice Standard for Project Estimating → Aligns estimating with financial planning.
- Benefits Realization Management → Focus on linking outcomes to economic value.
- Business Analysis Practice Guide → Early-stage economic framing of initiatives.
- Standard for Risk Management in Portfolios, Programs, and Projects → Includes financial impact of risk scenarios.
Micro-Credentials (PMI):
- Agile Metrics for Success → Value-based indicators and economic outcomes.
- Value Stream Management → Connecting flow efficiency with financial results.
- Benefits Realization → Economic justification and impact measurement.
Online Courses (Coursera / edX):
- Finance for Non-Financial Professionals (UCI) → Clear overview of financials applied to projects.
- Construction Finance and Project Evaluation (Columbia University) → Focused on budgeting, risk and delivery methods.
- Infrastructure Economics and Finance (MITx / Delft) → Public-private project financing and economic evaluation.
If you're building fluency in this area, combining structured finance knowledge with decision analysis under uncertainty (Monte Carlo, sensitivity, etc.) can be especially valuable.
Would be curious to know:
- Are you applying this in capital-intensive projects, innovation portfolios, or early-stage business cases?
Great question! I recommend "Cash Flow Analysis & Forecasting" (Jury), "Project Risk Analysis" (Salkeld), and "Project Finance" (Rajesh Kumar), all practical guides for managing cash flows, funding, and risk in projects. Saving Changes...
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