Tag: CFA
Corporate Finance Modeling
by theorangedog on Apr.15, 2008, under Skills
I return bearing gifts. After a short and well-used break from the site, I am glad to post a working version of a capital budgeting model. This model is straightforward, and focuses on corporate finance in terms of project analysis.
It incorporates all of the standard features, such as IRR and NPV calculations, but it adds a bit more. These special features include:
Scenario Analysis The user can compare multiple scenarios (3) side by side.
Sensitivity Analysis The user can manipulate inputs with slide bars to immediately see the impact on profitability.
SML Hurdle Rate The user can follow the SML methodology to develop a project specific hurdle rate.
Equivalent Annual Annuity The user can use the EAA method to compare projects with varying lives.
Multiple Depreciation Method The user can select straight line, or use a custom (commonly accelerated or MACRS) depreciation schedule.
Graphics The model automatically creates presentable 3D graphics to showcase the results based upon the selected inputs. These can quickly be copied and pasted into other MS software, such as PowerPoint.
As usual, the model has been uploaded to the Models page of the foquant.com site. The “Terms” tab has not been completed, but once uploaded that will share additional insight into the inputs and outputs of the model. Also, as usual, the user assumes any and all risk - I partake in model creation for recreation; if any reliance is placed upon these models it is at the assumption of risk of the user.



