The Dudumwezi city Council is a considering the introduction of speed trains in order to

deal with the problem of traffic congestion in the city. The project will be implemented

through the PPP model. Councilors are skeptical about the financial viability of the

project and have asked for a financial viability assessment of the project. To this end the

council management has engaged a consultant to carry out this assessment.

Required:

To aid the Councilor$$s$,$ explain why it is important to carry out a cash flow analysis in

project finance and the five factors that need to be considered when calculating cash

flows.