Learn how to create cash-flow scenarios using compounded annual growth rates (CAGR) in Excel.
- [Instructor] Let's start by creating some basic scenarios…that'll help us understand…what the opportunities and risks are…in a capital budgeting investment scenario.…I'm in the 02_02_Begin Excel file.…Now, what you'll see here…is that we've got our investment property.…And we've filled in our revenues and costs.…And after taking into account revenues and costs,…this particular investment vehicle…throws off just under $23,000 a year in cashflow.…
Now, we have to pay a million dollars for that property.…That's the market value.…What we're fundamentally asking,…and a key part of corporate finance is the following.…Is that one million dollar purchase price…worth $23,000 per year in cashflow?…Maybe it's worth more than a million dollars,…maybe it's worth less.…That $23,000 every year in cashflow has some kind of value.…We just need to decide what it is.…
To do that, we're going to go through and build out…what we call a discounted cash flow model.…That discounted cash flow model…is a key tool in corporate finance.…
- Capital budgeting in Excel
- Using Excel in project selection
- Analyzing capital structure using Excel
- Estimating weighted average cost of capital (WACC)
- Applying Excel to operational budgeting
- Cash flow budgeting
- Stress test tools for budgets
Skill Level Intermediate
Excel 2016: Power Query (Get & Transform)with Oz du Soleil1h 49m Intermediate
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
1. Critical Tasks in Corporate Finance
2. Project Selection in Excel
3. WACC and Capital Structure in Excel
4. Operational Budgeting in Excel
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