Join Michael McDonald for an in-depth discussion in this video Unexpected events and capital budgeting, part of Excel for Corporate Finance Professionals.
- [Instructor] Now that we've analyzed…our investment project using a wide array of tests,…we wanna turn to an underlying issue…that often gets overlooked,…the challenge of forecasting…and the importance of scenario modeling.…The reality is that most companies out there…have multiple products or services.…There's very few firms where they truly only sell one thing.…Generally then from a corporate finance perspective,…we wanna model our combined revenue streams.…A simple cashflow model then…might look like what we see here.…
Our cash flow is equal to the revenue from product one…plus the revenue from product two…minus the costs from product one…and minus the costs from product two.…We can apply all of this in the context of the example…we've been discussing.…I'm in the 02_06_Begin Excel file.…Now, we've previously made the assumption…that all of our revenues here were consistent.…We've built in the occupancy rate…into our discount rate of 6%.…
We in essence said that 6% discount rate…reflected the risk of not having a renter.…
- 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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