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Capital Budgeting Excel Template (NPV, XNPV, IRR, MIRR, XIRR)

This excel template provides worked examples of Excel's 3 traditional capital budgeting functions available as well as 2 of these functions that are date specific.

This worksheet illustrates the use of the NPV, the IRR, and MIRR functions. In addition, using the NPV function to determine a PI (Profitability Index) is all illustrated. Some solution detail is provided below in addition to the Excel function solutions.

The date specific functions are presented in the XNPV and XIRR Example worksheet.

Caution: When using the NPV function, Excel treats the first cash flow as occurring at time period t = 1, not t = 0. In contrast, with all of the other capital budgeting functions; the first cash flow is assumed to occur in period t = 0.

Created by Bob Johnston of the School of Management at George Mason University.

Tags: capital budgeting, irr, mirr, npv, xirr, xnpv

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Thanks for your efforts

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Thanks a lot.. This amazing template will help me for my upcoming comprehensive exam in MBA.. God Bless you for sharing this..

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hi Bob...this is excellent.will u plz help me in creating operating model of any textile firm.and will u plz tell me about credit rating process? thanks
Regards
Rabeea

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Bob
Rabeea
Am equally interested in having operating model of any textile firm.if done & / or during the process I would like to be part of the whole process
vivek Tondapurkar

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hey bob

could you please email this attachment to me?

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Hi Bob,
I was wondering if you or anyone can help me out with this problem. My organisation is making a asset replacement decision, to replace about 14 PC's all bought back b/w 03-05 period. Due to budget limitations, management has made a decision to upgrade all the PC's rather than buy. I want to convince them that upgrading old PC's, which by standard is out-of-date, would in fact cost more in future; thus they should replace with new sets of PC's. The upgraded Pc's are anticipated to be replaced in 2 years time should they be undertaken this year.


I would appreciate your assistance with this to assist me understand better your excel template and the Capital Budgeting Technique.

Many thanks,

BL

Many thanks.
BL

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Hi Bob, I think this would be great for simulation exercises in class. Can you please email this to me as the download seems not to be working. My email address is giddo18@yahoo.com or giddo18@hotmail.com.

Thanks and God bless you

GIDEON

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Mr. Bob Johnson, this is a wonderful peace of work. But, I have little problem with the Recommendations.

You know in capital budgeting, where there is more than one project, consideration must be given to whether the projects are mutually exclusive(the two cannot be taken at the same time) or not.

If the two projects are mutually exclusive, the recommendation is to accept the project with higher NPV, IRR, MIRR, or PI which should be above the projects cost of capital or the targeted returns or index.

if the two projects are not mutually exclusive, the recommendation in this model can be accepted.

Could you please let me know which of the above assumption was used in your model? I really love it.

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hello

Very useful templates almost ready to use .

Vijay

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