The aim of this research is to develop the cash flow forecasts of long-term projects in Foster Wheeler Energia Oy. In order to solve this problem, it is necessary to study what factors affect the successful preparation of cash flow forecast and what kinds of problems have occurred in forecasting cash flows in Foster Wheeler Energia Oy.

This study includes both a theoretical and an empirical section. The aim of the theoretical section is to introduce earlier studies concerning projects and cash flow forecasting. A reference framework and a set of assumptions are formulated on the basis of the theoretical section. Both the reference framework and assumptions are then used in the analysis in the empirical section. The method of analysis chosen for this study is qualitative and the research methodology action-oriented research.

The result of the study shows that Foster Wheeler Energia Oy’s cash flow forecasts could be developed, firstly, by changing the attitudes and working habits of the company’s project personnel. The aim of this change is to enhance the staff’s cost awareness as well as teamwork that endures entire projects. A second way in which cash flow forecasts could be enhanced would be to improve the present cost estimating system for projects. A system that uses real information obtained from earlier projects would allow accurate cash flow forecasts to be elaborated more rapidly and accurately than before.