Developing a Model for Financial Analysis of Investment Projects with Environmental Impact

Benedicta DROBOTÄ‚, Aurel CHIRAN, Elena GáŽNDU, Ionuț DROBOTÄ‚


The purpose of this study aims to make a model in Excel program for calculating thefinancial performance of an investment project with environmental impact. Thus, it will be determinedthe financial support and long-term sustainability, financial performance indicators and the reasons forrequested the amount of grant assistance. Financial analysis will involve the following steps: estimateproject revenues and costs and their implications in terms of cash flow; determine the funding gap forthe selected option and subsequently calculate the eligible expenditure that can be financed fromgrants; defining the system of financing the project and its financial profitability: this is achieved byconsidering the level of funding that can be obtained, and any other funding sources (national sources,bonds, loans); checking the projected cash flow to ensure the proper functioning of the project;fulfilment of the investment obligations: a project is financially sustainable when it is no risk ofrunning out of cash in the future. An important element is planning cash inflows and outflows. Theanalysis will demonstrate the ability to cover payments each year by funding sources for the entirereference period of the project. Sustainability occurs if the cumulative net cash flow is positive for allconsidered years.


financial analysis, investment projects, environment

Full Text:



University of Agricultural Sciences and Veterinary Medicine
3-5 Manastur St., 400372 Cluj-Napoca
Tel: +40-264-596.384 | Fax: +40-264-593.792