Professional Documents
Culture Documents
Financial Modeling (Rizwan) 160515 New
Financial Modeling (Rizwan) 160515 New
Pv
Rate
Nper
500,000
12.25%
8.00
Fv
1,260,261.88
Car Financing
Car List Price
Down Payment
Loan Amount
No. Of years
Rate
1,500,000
400,000
1,100,000
5
17.50%
No. Of periods
60
Monthly Installment
27,634
PMT
Months
1,100,000
1,088,407.23
1,076,645.40
1,064,712.05
1,052,604.66
1,040,320.71
1,027,857.62
1,015,212.77
1,002,383.53
689,367.18
671,786.02
653,948.46
635,850.78
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
Formula
PPMT
Principal
11,592.77
11,761.83
11,933.36
12,107.38
12,283.95
12,463.09
12,644.84
12,829.25
13,016.34
17,581.16
17,837.56
18,097.69
18,361.61
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 -
617,489.17
598,859.78
579,958.72
560,782.01
541,325.65
521,585.55
501,557.57
481,237.51
460,621.13
439,704.08
418,482.00
396,950.43
375,104.85
352,940.70
330,453.31
307,637.99
284,489.94
261,004.32
237,176.19
213,000.58
188,472.40
163,586.52
138,337.73
112,720.72
86,730.12
60,360.50
33,606.33
6,461.98
21,078.22
49,020.04
77,369.35
106,132.09
135,314.28
164,922.05
194,961.60
225,439.23
256,361.32
287,734.35
319,564.92
351,859.67
384,625.39
417,868.95
451,597.31
485,817.54
520,536.81
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
18,629.38
18,901.06
19,176.70
19,456.36
19,740.10
20,027.98
20,320.05
20,616.39
20,917.04
21,222.08
21,531.57
21,845.57
22,164.16
22,487.38
22,815.32
23,148.05
23,485.62
23,828.12
24,175.62
24,528.18
24,885.88
25,248.80
25,617.01
25,990.59
26,369.62
26,754.18
27,144.34
27,540.20
27,941.83
28,349.31
28,762.74
29,182.19
29,607.77
30,039.55
30,477.63
30,922.09
31,373.04
31,830.56
32,294.76
32,765.72
33,243.56
33,728.36
34,220.23
34,719.27
35,225.60
59 60 -
555,762.41
591,501.71
27,634.44
27,634.44
35,739.30
36,260.50
Rate
Fv
Rate
Nper
1,260,261.88
12.25%
8
Pv
Fv
Nper
500,000.00
Rate
Pv
IPMT
Interest
16,041.67
15,872.61
15,701.08
15,527.05
15,350.48
15,171.34
14,989.59
14,805.19
14,618.09
10,053.27
9,796.88
9,536.75
9,272.82
Closing Balance
1,088,407.23
1,076,645.40
1,064,712.05
1,052,604.66
1,040,320.71
1,027,857.62
1,015,212.77
1,002,383.53
689,367.18
671,786.02
653,948.46
635,850.78
617,489.17
Extra Payment
300,000
9,005.05
8,733.37
8,457.73
8,178.07
7,894.33
7,606.46
7,314.38
7,018.05
6,717.39
6,412.35
6,102.86
5,788.86
5,470.28
5,147.05
4,819.11
4,486.39
4,148.81
3,806.31
3,458.82
3,106.26
2,748.56
2,385.64
2,017.43
1,643.84
1,264.81
880.26
490.09
94.24
-307.39
-714.88
-1,128.30
-1,547.76
-1,973.33
-2,405.11
-2,843.19
-3,287.66
-3,738.60
-4,196.13
-4,660.32
-5,131.29
-5,609.12
-6,093.92
-6,585.79
-7,084.84
-7,591.16
598,859.78
579,958.72
560,782.01
541,325.65
521,585.55
501,557.57
481,237.51
460,621.13
439,704.08
418,482.00
396,950.43
375,104.85
352,940.70
330,453.31
307,637.99
284,489.94
261,004.32
237,176.19
213,000.58
188,472.40
163,586.52
138,337.73
112,720.72
86,730.12
60,360.50
33,606.33
6,461.98
21,078.22
49,020.04
77,369.35
106,132.09
135,314.28
164,922.05
194,961.60
225,439.23
256,361.32
287,734.35
319,564.92
351,859.67
384,625.39
417,868.95
451,597.31
485,817.54
520,536.81
555,762.41
-8,104.87 -8,626.07 -
591,501.71
627,762.21
No. of Periods
500,000.00
1,260,261.88
8
Pv
Rate
Fv
12.25%
Nper
2.1
Annuity Payment
Formula
.= r (pv) / 1 - (1+r)^-n
Mannual
Months
Opening Balance
1
2
3
4
5
6
7
8
9
10
11
12
13
1,100,000.00
1,088,407.23
1,076,645.40
1,064,712.05
1,052,604.66
1,040,320.71
1,027,857.62
1,015,212.77
1,002,383.53
689,367.18
671,786.02
653,948.46
635,850.78
Installment Principal
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
11,592.77
11,761.83
11,933.36
12,107.38
12,283.95
12,463.09
12,644.84
12,829.25
13,016.34
17,581.16
17,837.56
18,097.69
18,361.61
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
617,489.17
598,859.78
579,958.72
560,782.01
541,325.65
521,585.55
501,557.57
481,237.51
460,621.13
439,704.08
418,482.00
396,950.43
375,104.85
352,940.70
330,453.31
307,637.99
284,489.94
261,004.32
237,176.19
213,000.58
188,472.40
163,586.52
138,337.73
112,720.72
86,730.12
60,360.50
33,606.33
6,461.98
21,078.22
49,020.04
77,369.35
106,132.09
135,314.28
164,922.05
194,961.60
225,439.23
256,361.32
287,734.35
319,564.92
351,859.67
384,625.39
417,868.95
451,597.31
485,817.54
520,536.81
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
27,634.44
18,629.38
18,901.06
19,176.70
19,456.36
19,740.10
20,027.98
20,320.05
20,616.39
20,917.04
21,222.08
21,531.57
21,845.57
22,164.16
22,487.38
22,815.32
23,148.05
23,485.62
23,828.12
24,175.62
24,528.18
24,885.88
25,248.80
25,617.01
25,990.59
26,369.62
26,754.18
27,144.34
27,540.20
27,941.83
28,349.31
28,762.74
29,182.19
29,607.77
30,039.55
30,477.63
30,922.09
31,373.04
31,830.56
32,294.76
32,765.72
33,243.56
33,728.36
34,220.23
34,719.27
35,225.60
59 60 -
555,762.41
591,501.71
27,634.44
27,634.44
35,739.30
36,260.50
500,000.00
12.25%
1,260,261.88
8
Interest
16,041.67
15,872.61
15,701.08
15,527.05
15,350.48
15,171.34
14,989.59
14,805.19
14,618.09
10,053.27
9,796.88
9,536.75
9,272.82
300000
9,005.05
8,733.37
8,457.73
8,178.07
7,894.33
7,606.46
7,314.38
7,018.05
6,717.39
6,412.35
6,102.86
5,788.86
5,470.28
5,147.05
4,819.11
4,486.39
4,148.81
3,806.31
3,458.82
3,106.26
2,748.56
2,385.64
2,017.43
1,643.84
1,264.81
880.26
490.09
94.24
307.39
714.88
1,128.30
1,547.76
1,973.33
2,405.11
2,843.19
3,287.66
3,738.60
4,196.13
4,660.32
5,131.29
5,609.12
6,093.92
6,585.79
7,084.84
7,591.16
598,859.78
579,958.72
560,782.01
541,325.65
521,585.55
501,557.57
481,237.51
460,621.13
439,704.08
418,482.00
396,950.43
375,104.85
352,940.70
330,453.31
307,637.99
284,489.94
261,004.32
237,176.19
213,000.58
188,472.40
163,586.52
138,337.73
112,720.72
86,730.12
60,360.50
33,606.33
6,461.98
21,078.22
49,020.04
77,369.35
106,132.09
135,314.28
164,922.05
194,961.60
225,439.23
256,361.32
287,734.35
319,564.92
351,859.67
384,625.39
417,868.95
451,597.31
485,817.54
520,536.81
555,762.41
8,104.87 8,626.07 -
591,501.71
627,762.21
years
1
2
3
4
5
6
Case1
Initial Investment
7000
annual cashflow
2650
payback period
2.64 years
Case2
Initial Investment
annual cashflow
1800
2000
2200
2600
2100
1500
8000
cumm. Cashflow
1800
3800
6000
8600
10700
12200
payback period
3 years
4 years
decision
Recommended
Practice Questions
Case 1
Initial Investment
Annual Cashflows
Payback Period
Case 2
Initial Investment
Years
1
2
3
4
5
6
7
8
9.23 months
PayBack Period
Decision Rule
Not Recommended
15000
3000
5 Years
5.45
20000
Cashflows
4500
3250
2500
1550
6000
9000
2500
1000
Cummulative Cashflows
4000
7250
9750
11300
17300
26300
28800
29800
Years
5.4 Months
Years
Months
ack Period
15000
10.50%
6
Cashflows
PV Of Cashflows
4500
3250
2500
1550
6000
9000
2500
1000
4,072.40
2,661.70
1,852.91
1,039.64
3,642.00
4,943.89
1,242.81
449.89
Decision Rule
5.7
5.00 years
6 years
ACCEPTED
5.48
months
Depriciation Table
Case 1
Assets Name
Cost
Life
Residual Value
Machine
150,000
8
25,000
Straight Line
With SLN Function
Years
150,000
134,375
118,750
103,125
87,500
71,875
56,250
40,625
15,625
15,625
15,625
15,625
15,625
15,625
15,625
15,625
Mannual
Years
150,000
134,375
118,750
103,125
87,500
71,875
56,250
40,625
15,625
15,625
15,625
15,625
15,625
15,625
15,625
15,625
ble
Case 2
Furniture & Fixture
95,000
15
15,000
Rate
-11.58%
Reducing Balance
Mannual
NBV
Years
134,375
118,750
103,125
87,500
71,875
56,250
40,625
25,000
NBV
134,375
118,750
103,125
87,500
71,875
56,250
40,625
25,000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Methods
1. Straight Line
2. Reducing Balance
Opening Balance
Depriciation Charge
95,000
84,000
74,274
65,675
58,070
51,347
45,402
40,145
35,497
11,000
9,726
8,600
7,604
6,724
5,945
5,257
4,648
4,110
84,000
74,274
65,675
58,070
51,347
45,402
40,145
35,497
31,387
31,387
27,752
24,539
21,698
19,186
16,964
3,634
3,213
2,841
2,512
2,221
1,964
27,752
24,539
21,698
19,186
16,964
15,000
13,775.00 1year+months
With DB Function
Years
1
2
3
4
5
6
7
8
9
95000
83,980
74,238
65,627
58,014
51,284
45,335
40,076
35,428
11,020
9,742
8,612
7,613
6,730
5,949
5,259
4,649
4,110
83,980
74,238
65,627
58,014
51,284
45,335
40,076
35,428
31,318
10
11
12
13
14
15
31,318
27,685
24,474
21,635
19,125
16,907
3,633
3,211
2,839
2,510
2,219
1,961
27,685
24,474
21,635
19,125
16,907
14,945
Cash Book
Balances
Sr. No
Date
1
2
3
4
5
6
7
8
9
10
Description
cash sales
commision
Rent and Rates
Wages & Salaries
Depreciation
Loan Issued
Purchase
Plant & Machinery Purchsed
Building Sold
Share Capital Issued
650,000.00
Debit
250,000
150,000
50,000
200,000
245,000.00 405,000.00
Credit
Balance
25,000
10,000
50,000
100,000
60,000
250,000
225,000
215,000
165,000
165,000
315,000
215,000
155,000
205,000
405,000
Variance Analysis Fo
Jan-15
Details
Budget Amount
Incomes
Salary
Bonus
PB Encashment
Profit from Business
Dividend Received
Intrest Received
500000
100000
750000
200000
50000
80000
Expenses
Electricity
Telephone
Rent and Rates
Renovation Expense
Insurance Expense
Training Expense
Entertainment
30000
5000
50000
70000
150000
200000
100000
Unfavourable
Favourable
Unfavourable
Unfavourable
Favourable
Unfavourable
Budgeted Amount
400,000.00
50,000.00
1,000.00
150,000.00
40,000.00
70,000.00
25000
7000
60000
50000
125000
150000
70000
Mar-15
Budgeted Amount
450000
75000
1500000
175000
45000
90000
35000
9000
55000
65000
140000
175000
125000
Total Variance
Slab No.
1
2
3
4
400,001
750,001
1,400,001
400,000
750,000
1,400,000
1,500,000
17,500
82,500
Rate
0.0%
5.0%
10.0%
12.5%
1,500,001
1,800,000
95,000
15.0%
6
7
8
9
10
11
1,800,001
2,500,001
3,000,001
3,500,001
4,000,001
7,000,001
2,500,000
3,000,000
3,500,000
4,000,000
7,000,000
9,999,999,999
140,000
262,500
362,500
475,000
600,000
1,425,000
17.5%
20.0%
22.5%
25.0%
27.5%
30.0%
Slab No.
1
2
3
4
5
6
7
8
9
10
11
400,001
750,001
1,400,001
1,500,001
1,800,001
2,500,001
3,000,001
3,500,001
4,000,001
7,000,001
400,000
750,000
1,400,000
1,500,000
1,800,000
2,500,000
3,000,000
3,500,000
4,000,000
7,000,000
9,999,999,999
17,500
82,500
95,000
140,000
262,500
362,500
475,000
600,000
1,425,000
Rate
0.0%
5.0%
10.0%
12.5%
15.0%
17.5%
20.0%
22.5%
25.0%
27.5%
30.0%
Basic Salary
Taxable Allowances
Gross Salary Monthly
115,500
16,000
131,500
Annual Salary
1,578,000
106,700
8,892
122,608
Basic Salary
Taxable Allowances
Gross Salary Monthly
100,000
35,000
135,000
Annual Salary
1,620,000
113,000
9,417
125,583
Bond Valuation
Issue Date
1/1/2002
1/1/2012
Price ?
Coupon Rate
Redemption Value
Yield Rate
price
8
100
6
125.9763971863
Yield Rate
Coupon Rate
Redemption Value
price
Yield Rate
8
100
71.71
10.0003138348
Coupon Rate
Price
Redemption Value
price
Yield Rate
100
110
65
10
fv
coupon Rate
0.91%
price formula
frequncy
basis
8.00%
200000 $216,000.00
258,967.80
8.50%
10.50%
$234,360.00 $258,967.80
intrest paid
annualy
half yearly
quarterly
1
2
4
year days
360
365
0
1
Data
Ace Ltd
machine cost
annual savings
wages
material
7,000
1,000
400
Inflation Rates
wages
material
general prices
Cost of Capital
Life
years
Initial Investment
Wages Savings
material savings
cashflows in money terms
Discount Rate
Present Values
10%
5%
6%
15%
5
1100
420
-7000
1520
1 0.86956522
-7000 1321.73913
1210
441
1651
0.7561436673
1248.393194707
-7000
-1080.6357896
With Formula of FV
Years
wages savings
inflated
mat savings
inflated
net cashflows
NPV
IRR
1000
$1,100.00
1000
$1,210.00
400
$420.00
-7000 $1,520.00
400
$441.00
$1,651.00
($1,080.64)
Decision
8.63%
Decision
1331
1464.1
1610.51
463.05
486.2025
510.512625
1794.05
1950.3025 2121.022625
0.6575162324 0.5717532456 0.4971767353
1179.6169968 1115.0917843 1054.5231042
Formula of FV
3
1000
$1,331.00
1000
$1,464.10
1000
$1,610.51
400
$463.05
$1,794.05
400
$486.20
$1,950.30
400
$510.51
$2,121.02
Bad
Reject
working
wages savings
inflation rates 10
savings in money terms
material savings
Infl rate 5
material savings
1
1000
1.1
1100
400
1.05
420
2
1000
1.21
1210
3
1000
1.331
1331
4
1000
1.4641
1464.1
5
1000
1.61051
1610.51
400
400
400
400
1.1025 1.157625 1.215506 1.276282
441
463.05 486.2025 510.5126
Data
Selling price per unit
Variable Cost Per Unit
Fixed Cost per month
Jan Units
Lima Co
Dated
45
25 Increase
40,000
6150 Increase
1/1/2014
10% From April
feb
15%
7073
2014
a,b
Sales
Variable Cost
Gross Income
Fixed Cost
Operating Income
Jan
Feb
Mar
Apr
276,750
153,750
123,000
40,000
318,263
176,813
141,450
40,000
366,002
203,334
162,668
40,000
420,902
233,835
187,068
40,000
83,000
101,450
122,668
147,068
Breakeven Units
2,000
jan
selling price per unit
unit sold
revenue
variable cost
total variable cost
fixed cost
45
6150
276750
25
153750
40000
total cost
profit
193750
83000
Feb
Mar
Apr
May
Jun
Breakeven at vc 25
2000
breakeven at vc27.5
2286
June Target
Month
Jan
250000
16571
Feb
Mar
Apr
May
Jun
code
prod
rate
code
Piz001
Bre001
prod
pizza
bread
rate
code
bre001
Piz001
prod
bread
pizza
25
50
rate
50
25
mar
apr
8133
9353
$27.50
v cost
May
may
jun
10756
$30.25
12370
$33.28
Jun
484,037
295,801
188,237
40,000
556,643
374,188
182,455
40,000
148,237
142,455
Projections
15%
7073
8133
9353
10756
12370
Feb
Mar
Apr
May
Jun
feb
vc
83000
7073
8133
9353
10756
12370
mar
vc
25
apr
vc
25
may
vc
27.5
jun
vc
27.5
27.5
Profit
Profit
83000
200000
180000
160000
Profit
101,450.00
122,667.50
123,684.17
148,236.80
176,472.32
Piz001
pizza
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Jan
Bre001
bread
25
50
Feb
Mar
Apr
Profit
VC
feb
Mar
Apr
May
jun
83000
7073
8133
9353
10756
12370
VC
25
VC
25
VC
27.5
VC
27.5
27.5
Profit
Profit
Apr
May
Jun
Apartment cost
Price
Furnishing Cost
Bank Charges
1,600,000
10,000
10,000
Total Cost
1,620,000
Property Valuation
1
Period
Opening Balance
Gain
Closing Balance
1,600,000.00
114,837.54
1,714,837.54
9% -
5% -
5% -
35% -
83,200.00
7,488.00
4,160.00
71,552.00
45,000
26,552.00
9,293.20
17,258.80
Debt
Opening Balance
Repayment
Closing Balance
900,000.00
-
17,258.80
882,741.20
Capital Gain
Sales Period
Gain
CGT
Cashflows After Sales
IRR
5
20%
-
720,000
Funding
Equity
Debt
Total
720,000
900,000
1,620,000
123,079.83
131,913.69
141,381.60
151,529.04
1,837,917.37 1,969,831.06 2,111,212.66 2,262,741.70
-
-
2%
84,864.00
7,637.76
4,243.20
72,983.04
44,137.06
28,845.98
10,096.09
18,749.89
-
-
2%
86,561.28
7,790.52
4,328.06
74,442.70
43,199.57
31,243.14
10,935.10
20,308.04
-
-
5%
90,889.34
8,180.04
4,544.47
78,164.84
42,184.16
35,980.67
12,593.24
23,387.44
-
-
5%
95,433.81
8,589.04
4,771.69
82,073.08
41,014.79
41,058.29
14,370.40
26,687.89
882,741.20
863,991.31
843,683.28
820,295.84
-
18,749.89 -
20,308.04 -
23,387.44 -
26,687.89
863,991.31 843,683.28 820,295.84 793,607.95
642,741.70
128,548.34
1,340,585.41
13.24%
3,200,000
83,200
7%
162,404.81
174,061.16
186,554.13
199,943.77
2,425,146.51 2,599,207.67 2,785,761.80 2,985,705.57
-
-
5%
100,205.50
9,018.50
5,010.28
86,176.73
39,680.40
46,496.33
16,273.72
30,222.62
-
-
5%
105,215.78
9,469.42
5,260.79
90,485.57
38,169.27
52,316.30
18,310.71
34,005.60
-
-
5%
110,476.57
9,942.89
5,523.83
95,009.85
36,468.99
58,540.86
20,489.30
38,051.56
-
-
5%
116,000.39
10,440.04
5,800.02
99,760.34
34,566.41
65,193.93
22,817.88
42,376.05
793,607.95
763,385.34
729,379.74
691,328.18
-
30,222.62 -
34,005.60 -
38,051.56 -
42,376.05
763,385.34 729,379.74 691,328.18 648,952.13
10
2,985,705.57
214,294.43
3,200,000.00
-
-
5%
121,800.41
10,962.04
6,090.02
104,748.36
32,447.61
72,300.75
25,305.26
46,995.49
648,952.13
-
46,995.49
601,956.64