Finance Fundamentals: Project Evaluation with NPV

An Introduction to Finance, Cash Flows, and Project Evaluation

Created by: Minh Pham

What Will I Learn?

• Learn how to Build a Simple Financial Model in Excel
• Be able to calculate the Net Present Value (NPV) for a Project and apply the NPV decision criterion to accept or reject the project on a financial basis.
• Develop a Pro-Forma Income Statement from a set of Project Assumptions
• Carry out Scenario Analysis on their model using Microsoft Excel's Data Tables and Goal Seek Function
• Carry out Scenario Analysis with Excel's Data Tables and Goal Seek function
• Calculate Free Cash Flow of a Project from Scratch
• Understand the Time Value of Value
• Understand the role and purpose of Net Present Value
• Apply Mid-Year Discounting
• Calculate the Terminal Value or Continuing Value for a Project
• We will be doing plenty of hand calculations to illustrate the mechanics of the formula, before diving into Excel Spreadsheet to tackle the more in depth exercises.

Requirements

• Basic Mathematics, as we will be playing with numbers 🙂
• Basic computer skills
• Microsoft Excel for Building Financial Models
• Pen and Paper for Calculation Exercises (or Tablet and Stylus)

Target audience

• Anyone that wants to improve or gain finance knowledge and skills
• Anyone that wants to understand how Project are evaluated from a financial perspective
• Anyone interested in financial modelling
• Anyone interested in learning how to calculate items such as present value, free cash flow, depreciation, terminal value, NPV, IRR, or payback periods.
• This is an Introductory Course. No prior knowledge in finance is required.