Discounted Cash Flow Valuations and Net Present Value
DatDude
Formulas.xlsxFormulas
| Growth Rate Formula | ||||||||||
| Sales | 100,000 | 1 | 2 | 3 | 4 | 5 | 6 | |||
| Growth Rate | 3% | 100,000 | 103,000 | 106,090 | 109,273 | 112,551 | 115,927 | |||
| NPV Formula | ||||||||||
| Cash Flows: | ||||||||||
| Start | -1000 tc={8912FDBB-42B1-46C1-BF59-6372F9D5459B}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: This is a cash outflow, so it is shown as a negative. | 0 | 1 | 2 | 3 | 4 | 5 | 6 | ||
| Year 1 -6 | 100 | -1000 | 100 | 100 | 100 | 100 | 100 | 100 | ||
| Rate | 8% | |||||||||
| NPV | $1,462.29 tc={8535771D-5E26-4FCE-AF9B-EA768A7218A3}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: I have made E10 in the formula negative. This is so I will get a positive answer. |
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| IRR Formula | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |||
| Cash Flows: | -1000 | 215 | 215 | 215 | 215 | 215 | 215 | |||
| Start | -1000 | |||||||||
| Year 1 -6 | 215 | |||||||||
| IRR | 8% | |||||||||
| Perpetuity Formula Example | ||||||||||
| Disc Rate | 10% | |||||||||
| Year 7 GR | 3.00% | 1 | 2 | 3 | 4 | 5 | 6 | |||
| 8 | 9 | 10 | 11 | 12 | 13 | |||||
| TV | 197.0242857143 tc={17C01153-B5E1-47D5-BDCD-21ED88FE86C1}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: To calculate a perpetuity, take the last year's cash flow, in this case year 6 @ $13, mulitply it by ! plus the the growth rate, exponentiated to the second power. Divide this by the required rate of return minus the growth rate. |
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tc={8912FDBB-42B1-46C1-BF59-6372F9D5459B}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: This is a cash outflow, so it is shown as a negative. |
