From the course: Investment Evaluation

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Evaluation methods

Evaluation methods - Microsoft Excel Tutorial

From the course: Investment Evaluation

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Evaluation methods

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- Before we get going with the heavy-hitting techniques, I will say this. There are many ways to evaluate in which direction you should go with an investment. In this course I'm gonna show you the most common ones that are industry-standard and are fairly easy to apply in your own scenarios. If you don't own a business you should still be aware that these mathematical and logical concepts apply to your daily life. As you continue following along, you'll see what I mean. Here's a sneak peek of what's to come in subsequent chapters. The first technique we'll cover is discounted cash flows, which I'll also call DCF from time to time. It basically just uses cash flow projections and discounts them fairly analogous to calculating present value using a discount rate. Although the calculations are complex, the purpose of DCF analysis is simply to estimate the money you've received from an investment and to adjust for the time value of money. If you already understand the concept of the time…

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