Excel Finance Class 83: Estimating Cash Flows For NPV calculation

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Uploaded by on Nov 14, 2010

Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm
Learn the basics of how to estimate future cash flows for an investment in order to calculate Net Present Value, Internal Rate Of Return and Payback. See how to calculate an pro forma income statement, estimate depreciation, estimate Operating Cash Flows, Capital Spending and how to use the NPV and IRR functions as well as a Payback calculation.

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Uploader Comments (ExcelIsFun)

  • thanks for sharing

  • You are welcome!

  • 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!

  • An inflation premium is part of the discount rate.

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

  • You are welcome! I am glad to help!

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  • 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...

  • 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?

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