Excel: Analyzing and Visualizing Cash Flows

Introduction

• Welcome
• Disclaimer
• Using the exercise files

1. Introducing the Time Value of Money

• Calculate the effect of interest rates and inflation
• Find the arithmetic and geometric means of growth rates
• Determine the value of a perpetuity
• Calculate the future value of an investment
• Calculate the present value of an investment
• Calculate loan payments for a fully amortized loan
• Calculate principal and interest components of loan payments
• Calculate the effect of paying extra principal with each payment
• Find the number of periods required to meet an investment goal

2. Calculating Net Present Value and Internal Rate of Return

• Introduce net present value and internal rate of return
• Calculate the net present value of an investment
• Calculate net present value given irregular inputs
• Calculate internal rate of return
• Calculate internal rate of return for irregular cash flows
• Calculate internal rate of return for mixed cash flows

3. Tracking and Visualizing Cash Flows

• Build a cash tracking worksheet
• Visualize cash flows using a waterfall chart
• Visualize the change in principal and interest payment components

Conclusion

• Additional resources