Mastering Cash Flow and Valuation Modelling

Conventions

• The main part of the text is set in AGaramond, whereas entries are set in Courier. For example:Enter the Scenario Name as Base Case
• Items on the menu bars also shown in Courier. For example:Select Data, What-if Analysis, Goal Seek
• The names of functions are in Courier capitals. This is the payment function, which requires inputs for the interest rate, number of periods, present value and future value.=PMT(INT,NPER,PV,FV,TYPE)
• Cell formulas are also shown in Courier. For example:=IF($C$75=1,IF($B25>C$22,$B25-C$22-C$23,-C$23), IF($B25<C$22,C$22-$B25-C$23,-C$23))
• Equations are formed with the equation editor and shown in normal notation. For example, net present value:
• Genders. The use of ‘he’ or ‘him’ refers to masculine or feminine ...