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?
We'll put our definition into an actual formula in this lecture.
We will understand our excel template and scope of the project.
We'll talk about the intracacies of depreciation in this section.
We will talk about investments, specifically with respect of free cash flows.
We will talk about net working capital here in Free Cash Flows.
We will explain the entire concept using an example.
We will talk about the terminal value and talk about the two methods - Liquidation method and Perpetuity method.
We will summarize in this section what we've learnt so far.
We'll look at some special cases in this section regarding the model.
The present value of free cash flows and how it relates to discount rate is what we will study in this section.
We will look at the 4 steps to calculate the discount rate. You will become a pro at the end of it.
We will understand the first 2 steps in this lecture to calculate the discount rate.
We'll understand how to unlever the equity beta that we find in steps 1 and 2.
Then we move to step 4 where we calculate the final discount rate using the capital asset pricing model (CAPM).
We will learn where to find the risk free rate and the market risk premium in this lecture.
We will summarize what we've learnt so far in this section to calculate discount rate.
We will introduce the concept of net present value in this section.
We will learn how to calculate the NPV.
We will use the NPV to make the investment decision in this section.
We will introduce the concept of debt tax shields and taking on debt into your project.
We will discuss the 2 techniques to take into account the debt tax shields - APV and WACC.
We will understand the first method - WACC in this lecture.
We will look at some of the shortcomings of both methods.
We will define the sample project in this section with the view of putting everything together.
We will specifically scope the project out here and define what specifically this project is about.
We'll start with Revenue in this section.
Then we'll define the cost of sales for our sample project.
Then we will talk about operational expenses and how to define them for our project.
Changes in Net Working Capital are next.
Then we move into investment and specifically start with the initial investment to kick start the project.
We'll put the remaining parts of investment together.
We'll start with our process of how we're going to calculate the discount rate.
Then we'll walk through calculating the discount rate.
We'll calculate the Net Present Value of our project.
We'll finally use the NPV to make the investment decision and then look at a sensitivity analysis on the entire model.
At coursetake, our mission is to give students and professionals a world class education on preparing for the workforce.
WE DO THAT BY CREATING HIGH QUALITY CURATED INTERVIEW AND CAREER PREPARATION COURSES THAT SPECIFICALLY USE A STEP-BY-STEP TEACHING APPROACH. OUR FOCUS IS COMPANY AND JOB TITLE SPECIFIC INTERVIEW PREPARATION.
Whether you are a student looking to start your career or an experienced professional looking to switch jobs, whether outside or within your current organization, we have something for you at coursetake.
Our instructors have interviewed for more than 10 years in the industry. They have worked at large companies like Microsoft, Groupon and a number of smaller startups as hiring managers. They have worked across the industry in technology, financial services, retail etc. They've got degrees in Business, Computer Science and Engineering.
WE ARE A TEAM OF PEOPLE LOCATED IN SEATTLE WHO BELIEVE IN PROVIDING YOU WITH THE ABSOLUTE BEST ORGANIZED INTERVIEW PREPARATION CONTENT.
With coursetake, we now bring this talent directly to you.