Decide whether to Invest in a Business
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Decide whether to Invest in a Business

Using Microsoft Excel to evaluate the profitibaility of investment decisions
0.0 (0 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
1 student enrolled
Last updated 2/2016
English
Current price: $10 Original price: $20 Discount: 50% off
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Includes:
  • 1 hour on-demand video
  • 12 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Learn how to create a financial model for your project or business
  • Use the financial model to calculate the Net Present Value of your investment
  • Use the Net Present Value to make a decision whether to invest in the project or not
  • Learn the basics of Free Cash Flows, NPV, WACC, APV - the basics of every financial model for a business
View Curriculum
Requirements
  • Needs would need to understand or use excel
Description

At the end of this course you will have all tools necessary to be able to effectively make investment decisions in your company. What we’re studying is an important piece of “Corporate Finance” in the business world.

We will use Excel to walk through the entire process of "Net Present Value" Analysis to decide whether or not its worth putting money into a project or a business or to buy an asset.

WHO IS THIS COURSE FOR?
  • Small Business Owners and Entrepreneurs trying to make a decision whether to invest in a company or not.
  • Managers in Large Corporations deciding whether to invest in a project or buying an asset.
  • Students learning entry level corporate finance.
COURSE OUTLINE
  1. Understanding Free Cash Flows
  2. Understanding Present Value of Free Cash Flows (NPV)
  3. Calculating the Discount Rate
  4. Net Present Value and Investment Decision
  5. Dealing with taking on Debt using the WACC and APV
  6. Sample Project to put everything together
  7. Conclusion
WHAT DO YOU GET WITH THE COURSE?
  1. 104 Page detailed presentation in pdf format walking you step by step how to perform an investment analysis.
  2. Complete excel templates including one with an entire sample project.
  3. 24/7 support at any point of time regarding questions applied to your own business.
Who is the target audience?
  • Small Business Owners and Entrepreneurs trying to make a decision whether to invest in a business
  • Managers in large corporations looking to invest in a project or buy an asset
  • Finance students looking to learn the basics of entry level corporate finance
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Curriculum For This Course
43 Lectures
01:06:47
+
Introduction
2 Lectures 02:31

We will introduce the entire course in this section.

Preview 01:50

We will walk through the entire process template in this section and the 5 main steps to achieve our mission.

Preview 00:41
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Free Cash Flows
10 Lectures 12:57

We will define Free Cash Flows in this section (FCF)

Preview 00:46

We'll put our definition into an actual formula in this lecture.

Preview 01:03

We will understand our excel template and scope of the project.

All Equity Financed Project and Excel Template
00:54

We'll talk about the intracacies of depreciation in this section.

Dealing with Depreciation
00:59

We will talk about investments, specifically with respect of free cash flows.

Dealing with Investments
00:42

We will talk about net working capital here in Free Cash Flows.

Changes in Net Working Capital (NWC)
01:44

We will explain the entire concept using an example.

Example for changes in Net Working Capital
01:10

We will talk about the terminal value and talk about the two methods - Liquidation method and Perpetuity method.

Terminal Value
02:50

We will summarize in this section what we've learnt so far.

Putting it all together
01:17

We'll look at some special cases in this section regarding the model.

FAQ
01:32
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Discount Rate
9 Lectures 14:31
We will introduce the concept of discount rate.
Preview 00:23

We will define what a discount rate is in this lecture.

Preview 01:35

The present value of free cash flows and how it relates to discount rate is what we will study in this section.

Present Value of Free Cash Flows
01:39

We will look at the 4 steps to calculate the discount rate. You will become a pro at the end of it.

4 Steps to calculating the Discount Rate
00:56

We will understand the first 2 steps in this lecture to calculate the discount rate.

Steps 1 and 2
02:14

We'll understand how to unlever the equity beta that we find in steps 1 and 2.

Step 3 - Unlevering
02:16

Then we move to step 4 where we calculate the final discount rate using the capital asset pricing model (CAPM).

Step 4 - Capital Asset Pricing Model Formula
01:37

We will learn where to find the risk free rate and the market risk premium in this lecture.

Risk Free Rate and the Market Risk Premium
02:06

We will summarize what we've learnt so far in this section to calculate discount rate.

Summarizing Everything
01:45
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Net Present Value (NPV)
2 Lectures 04:02

We will introduce the concept of net present value in this section.

Introduction
00:49

We will learn how to calculate the NPV.

Calculate the Net Present Value (NPV)
03:13
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Investment Decision
1 Lecture 02:14

We will use the NPV to make the investment decision in this section.

Investment Decision
02:14
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WACC and APV to Deal with Debt
5 Lectures 09:43

We will introduce the concept of debt tax shields and taking on debt into your project.

Preview 01:05

We will discuss the 2 techniques to take into account the debt tax shields - APV and WACC.

WACC and APV
01:14

We will understand the first method - WACC in this lecture.

Preview 03:00

We will understand the first method - APV in this lecture.
Adjusted Present Value (APV)
03:57

We will look at some of the shortcomings of both methods.

Issues with APV and WACC
00:27
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Sample Project
2 Lectures 02:04

We will define the sample project in this section with the view of putting everything together.

Introduction
00:29

We will specifically scope the project out here and define what specifically this project is about.

Defining the Project
01:35
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Sample Project - Free Cash Flows
7 Lectures 07:08

We'll start with Revenue in this section.

Revenue
01:04

Then we'll define the cost of sales for our sample project.

Cost of Sales
00:45

Then we will talk about operational expenses and how to define them for our project.

Operational Expenses
00:52

How to deal with depreciation is what we will see in this section.
Depreciation
01:16

Changes in Net Working Capital are next.

Changes in Net Working Capital
02:15

Then we move into investment and specifically start with the initial investment to kick start the project.

Initial Investment
00:28

We'll put the remaining parts of investment together.

Total Investment
00:28
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Sample Project - Discount Rate
2 Lectures 03:58

We'll start with our process of how we're going to calculate the discount rate.

Introduction
01:25

Then we'll walk through calculating the discount rate.

Calculating the Discount Rate
02:33
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Sample Project - NPV, Investment decision and sensitivity analysis
2 Lectures 05:24

We'll calculate the Net Present Value of our project.

Calculate the NPV
03:22

We'll finally use the NPV to make the investment decision and then look at a sensitivity analysis on the entire model.

Investment Decision and Sensitivity Analysis
02:02
1 More Section
About the Instructor
Coursetake Interview Preparation
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