← Project Appraisal Level 2: Financial Appraisal and Loan Structuring

Financial projections

Module 02 / 5 · 60 min

Build the projected income statement and cash flow line by line, so every figure traces back to an assumption the committee can question.

In this module you will learn to

Build revenue from capacity, utilization and price, with a realistic ramp-up
Separate variable and fixed costs and compute EBITDA, EBIT, interest, tax and net profit
Explain why depreciation is added back and derive cash flow available for debt service
Spot the common projection errors that inflate a project's case

Built on

Erudite Africa training module: Project Appraisal Level 2: Financial Appraisal and Loan Structuring (October 2026)
A commercial bank's Revised Credit Procedure Manual (2025), unnamed
NBE directives as listed in the lessons: FXD/01/2024, NBE/INT/13/2026, SBB/87/2024, SBB/88/2024, SBB/90/2024, CRB/02/2019, MCR/01/2020
Insurance Business Proclamation No. 746/2012
Erudite Africa: Ethiopian context for banking and finance training, 39 topics (2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.