ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book discusses some of the issues that merit special attention in the context of aviation projects. It deals with the discount rate and the related subject of risk and uncertainty. The book explores private financial benefits and costs offer a first approximation to economic benefits and costs. This constitutes a partial look at the flows associated with a project. The book explores the economic benefits of an investment offer the private sector investor clues about untapped sources of revenue; and economic costs signal potential risks arising from market distortions and badly defined property rights. The financial appraisal of an investment project involves estimating revenues and costs, including financing costs. Such an estimate constitutes the backbone of any standard business plan. The private sector financial analysis would be made with the weighted average cost of capital (WACC).
