Financial Modelling Handbook

My hypothesis about how depreciation will impact IRR

Can a non-cash item like depreciation impact IRR?

Step by step walk through of setting up the IRR calculation

Every business has a metric or set of metrics that matter the most. For our case study model, it's IRR.

What is the maximum amount of dividend that the model could pay? Looking at the income statement, at present, there is $322.7m of Profit after tax being generated over the life of the project. At present, those profits are not going anywhere. They are being retained in the business.

I said earlier in the book that it's useful to have a balancing balance sheet as early as possible in the model build. It helps us ensure that we are keeping our accounting and the internal consistency of our model on track. Similarly, it's helpful to

Hopefully, as soon as you knew you were dealing with balance sheet items, you already knew you would be dealing with new corkscrews. Here's the walkthrough. Download the solution file for this lesson: To obtain the worked example file to accompany this chapter buy the financial modelling handbook.

With revenue and opex taken care of, it's time to turn our attention to the balance sheet. The case tells us that the total Project Cost will be $100m by COD. This $100m will need to appear on our balance sheet. There are several different ways to account

Let’s take a step by step walkthrough of copying the Accounts receivable logic and adapting it for Accounts payable. Step 1: New Section heading Using Column A as usual. Step 2: Copy the Accounts Receivable logic Use Skill 7: How to copy a calculation block. In this instance, we