CHAPTER FOURCASE STUDY 1:Modeling the Front and Inputs Sheets

We will now apply the knowledge gained in Chapters 1 and 2 to build a financial model for the phone factory project.


We need to resist the temptation to go straight to our computer and start making calculations in Excel. Instead, let us try to draw a map of the model on paper to ensure that we have a good understanding of the requirements. But before we even do that, let us try to understand what we are being asked to do. Basically, we are planning to set up a business from scratch. The business requires some capital, say $C, to get started. Once it is up and running, the business will incur running costs, say $RC, but it will also generate some ...

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