You're reading from Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

Product type Book

Published in Jun 2022

Publisher Packt

ISBN-13 9781803231143

Pages 346 pages

Edition 2nd Edition

Languages

Concepts

Financial Technology

Author (1):

Shmuel Oluwa

Table of Contents (19) Chapters

Preface

1. Part 1 – Financial Modeling Overview

2. Chapter 1: An Introduction to Financial Modeling and Excel

3. Chapter 2: Steps for Building a Financial Model

4. Part 2 – The Use of Excel Features and Functions for Financial Modeling

5. Chapter 3: Formulas and Functions – Completing Modeling Tasks with a Single Formula

6. Chapter 4: Referencing Framework in Excel

7. Chapter 5: An Introduction to Power Query

8. Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF

9. Chapter 6: Understanding Project and Building Assumptions

10. Chapter 7: Asset and Debt Schedules

11. Chapter 8: Preparing a Cash Flow Statement

12. Chapter 9: Ratio Analysis

13. Chapter 10: Valuation

14. Chapter 11: Model Testing for Reasonableness and Accuracy

15. Part 4 – Case Study

16. Chapter 12: Case Study 1 – Building a Model to Extract a Balance Sheet and Profit and Loss from a Trial Balance

17. Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting

18. Other Books You May Enjoy

Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting

During its existence, an organization will be faced with critical investment decisions, such as branch expansion, purchase of new equipment, making or buying machinery decisions, the introduction of new products, and research and development projects. All of these require the allocation of crucial financial resources. The management of these investment decisions, including the allocation of scarce resources, is referred to as capital budgeting. There are four common concepts developed to assist management with these critical decisions, namely, Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Pay Back Period (PBP). The first three of these consider the time value of money and the fourth one doesn't. In this chapter, we will discuss and explain these concepts and then put them into practice with a comprehensive case study. The following are the major topics covered in this...