Cash Flow Analysis and Management of Project Portfolio Using Percentile Points

Abstract

Effective financial and cash flow management are essential elements of an effective project execution plan. For this study, five projects were being executed simultaneously by SOFTSTRUCT CONSULTANTS, a construction company based in Port Harcourt, Nigeria. The company has an overdraft limit of $1,200,000. They are to commence on different dates starting from September 2022 and ending at February 2026. The percentile point (PP) method was used to generate the cash flow analysis and management. It was found that the company arrived at a maximum overdraft of $1,200,000, which was less than the limit. This means the company is on the safe side to succeed with her project portfolio, and likely remain afloat to execute more projects in the future, using this kind of cash flow management technique for all her projects.