Join Michael McDonald for an in-depth discussion in this video NPV and scenario analysis, part of Excel for Corporate Finance Professionals.
- [Instructor] With a different set…of scenario possibilities mapped out around occupancy,…let's take one last look at the projects…that make the most sense for investment based…on our different forms of analysis thus far.…Now, we've talked about both NPV and IRR several times.…It's important to remember that IRR is more common…in business, but it has a number of drawbacks.…Certainly, IRR is very intuitive.…It's the percentage profit on a particular investment.…
The problem is that we're looking at that based on the idea…that any cash we receive can be reinvested…at that same rate.…If we can't reinvest at the same rate, well,…then all of a sudden our IRR is not correct.…We can deal with this using the modified IRR,…as we talked about, but that's not…the only drawback to IRR.…In particular, percentages can often be misleading…versus dollar profit figures.…Let's think about a particular investment.…
Let's say that investment A has a return of ten percent,…an IRR of ten percent and investment B only has a return…
- 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
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.