1. Congratulations!
Congratulations! You've completed Financial Modeling in Excel. We've reviewed some pretty complex topics and utilized Excel in advanced ways, so let me be the first to say that I'm proud of you!
2. Chapter 1: Financial models
In Chapter 1, you created a financial model that we used for the rest of the course. You used the special formatting for input cells and references to keep the workbook organized. You analyzed financial data and calculated subtotals, like total operating expenses and net income. You used growth rates to forecast the rental income, created named ranges, and used them in formulas. Finally, you used HLOOKUP to make the model respond to the investment horizon, which impacted our sale price and timing.
3. Chapter 2: Scenario analysis
In Chapter 2, you practiced scenario analysis in financial models with the What-if Tools. You used the scenario manager to create scenarios and then reviewed multiple scenarios at the click of a button. You used Goal Seek to find the input of starting rent that would give us a net income of 5 million dollars. Finally, you performed sensitivity analysis using one and two inputs with data tables.
4. Chapter 3: Time value of money
In Chapter 3, things got a bit more complex with the time value of money. You found the return on investment for West Ridge North. Then, you used the future value function to find the initial investment's value if it grew at the benchmark rate; we discounted the total return using the present value. Ultimately, we compared the future and present values to benchmarks to determine if West Ridge North would be a good investment.
5. Chapter 4: Capital budgeting
Finally, in Chapter 4, you calculated the net present value of West Ridge North with using the NPV and XNPV functions and learned the difference between them. You did the same with the internal rate of return, using the IRR and XIRR functions. You used the end-of-month function to create a date range that could be used with XNPV and XIRR functions. Finally, you used your newfound knowledge in capital budgeting to pick between competing projects.
6. Best of luck!
I hope you enjoyed learning these things with me, and I sincerely wish you the best of luck on your learning journey, wherever it takes you. Until next time!