|All Industries, Financial Model, General Excel Financial Models|
|Budgeting, Cash Flow Analysis, Discount Rate, Excel, Financial Model, IRR (Internal Rate of Return), Management, NPV (Net Present Value), Payback Period, Profitability Analysis|
This Capital Budgeting Analysis model template is used to provide an analysis of a proposed project. This model template includes the key metrics to calculate the value of the project using multiple methods to value the project’s cash flows.
The model starts with an assumptions section where you can enter in certain information such as projected unit sales, unit price and cost and any fixed costs that may be associated with the project. Below the assumptions, there is the proforma income statement along with a simple cash flow and discounted cash flow analysis that is all driven by formulas from the assumptions above. After that, the model contains 5 different project valuation methods to measure whether the project is a worthy investment; Net Present Value (NPV), Internal Rate of Return (IRR), Payback and Discounted Payback Period, and Profitability Index. For visualization, there is a graph to display cash flows over the valuation period.
All cells in blue font are input cells where custom information can be entered. All cells in black font are formulas set to streamline the model.