Forecasting the financial statements of your project is the first step to undertake a valuation. But knowing that your project will have a positive net income throughout the years is not enough to say that it has viability. You have take also into account the investment, how will it be financed, if and how the net income transformes into cash-flows, and finally, how will the economic benefits of your project evolve throughout the years (or any other time segmentation that you may be looking at).
You cannot state if a project is viable only based on the net income. The example demonstrates why you need to study the financial feasibility of your project or company. In this tutorial, we will be explaining different concepts of corporate valuation with emphasis on the Discounted Cash Flow of Free Cash Flows to the Firm approach, which is used with CASFLO APP. Valuation is a reasonably large field of study which is mostly applied to existing companies, but its principles also apply to entrepreneurship projects if it is considered the specificities of an entrepreneurship project. Do note that financial valuation is not the sole form and valuation and it does not attribute an sentimental value, environmental value, social value or any other type of appraisal that a person can have from a company or a entrepreneurship project.