Core References

• Restructuring and Managing the Enterprise in Transition Washington, D.C.: The World Bank, 1998, Chapters 1 and 9. Crum, Roy L., and Itzhak Goldberg

  Focuses on transitioning economies. Explains time value of money and calculating rate of return, including adjusting for inflation, risk, and multiple periods (present value calculations. Defines risk. Examines project analysis, including sensitivity and scenario analysis, internal rate of return, discount rates, and risk.

• Resetting Price Controls for Privatized Utilities: A Manual for Regulators Washington, D.C.: World Bank, 1999, Chapter 5. Green, Richard, and Martin Rodriguez Pardina

  Describes net present value analysis in a regulatory context for conducting a price review.

• Managerial Economics London: Norton & Co., 2002, Appendix A. Mansfield, Edwin, W. Bruce Allen, Neil A. Doherty, and Keith Weigelt

  Considers issues of time value of money, calculating rate of return, and risk.

Key Words

Cash flow, Risk, Rate of return, Present Value, Net Present Value, Inflation