Excel Finance Class 83: Estimating Cash Flows For NPV calculation

[hanajierong]

thanks for sharing

[ExcelIsFun]

You are welcome!

[ChauEmi]

Thank you so much! I stumbled on your videos a few days ago and they are helping me tremendously with corporate finance and Excel!

One question: how would you handle inflation in this example? I will search through your other videos to see if I can find the answer. You teach so clearly! That's the only question I have. Thanks again!

[ExcelIsFun]

An inflation premium is part of the discount rate.

[PassionateVipez]

Thanks :) im having a couple issues with my coursework at the moment but your videos are helping me out alot!

[ExcelIsFun]

You are welcome! I am glad to help!

[PassionateVipez]

what would one do if there was Interest when calculating the Annual Projected OCF? Do we add back the Depreciation AND Interest minus Tax or something else?

[ExcelIsFun]

Add back Depr, but the Interest and Dividend cash flows are not considered cash Flow From/To Assets. They are considered as a Cash Flow From/To Creditors and Stockholders. Usually, interest is not considered part of OCF for Cash Flow NPV calculation.

Please see the remaining videos for this chapter #83 to #89 for more details...