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Liam Bastick
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- Melbourne, Victoria
- Australia
- Head of Training, BPM
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Liam Bastick's Discussions
Consolidation Challenge
Replied Jun. 22, 2009
NPV improves with increase in discount rate
Replied Jun. 19, 2009
Consolidation Challenge
Replied Jun. 19, 2009
Liam Bastick's Page
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Latest Activity
Please note the FCTR entries are contained in the attachment (i.e. second question answered).
This is fundamentally untrue, speaking as a mathematician (please see my comment above) - consider cashflows of (100), 500 and (400) at Times 0, 1 and 2 respectively. NPV @10% = 24.0; NPV @20% = 38.9.
Hi,
I don't have enough information to answer your first question, although it does look like C is a subsidiary of A (depends on control, related parties, etc.).
For your second question, the answer is (as usual!) it depends. Perhaps this generic…
I presume you mean Interest During Construction..?
If so, assuming this is a cost associated with financing, you would be double-counting to include it if the IRR is being used as a 'back-solving' measure to work out what the cost of capital hurdle…
If your Excel spreadsheet is fine and you have no "hidden" associated costs of capital in your cashflows (e.g. tax paid instead of pre-financing tax paid for a post-tax enterprise value calculation), then the reason is probably mathematical. Discuss…
Liam, 90% of us are newbies; the other 10% just don't know what they don't know.
I'm a former programmer who has been using spreadsheets since the days of visicalc, and in all modesty I will say that I have stretched some aspects of excel and assor…
One minor point, not just about IRR but Free Cash Flow to the Firm cash flows in general (for 'project IRR' above). Always exclude the interest shield and any refinancing fees on tax also (otherwise you're effectively double counting). This is not a…
Profile Information
- Profession:
- Financial Modeller / Trainer
- Current Role:
- Head of Training, BPM
- Past Experience:
- Various corporate finance roles; strategy consultant; lecturer
- Education:
- Professional mathematician; chartered accountant; chartered management accountant
- Professional Skills & Interests Summary:
- 22 years modelling experience; 10+ years strategic work; 10+ years valuation analysis (including simulations, real options, etc.)
- Current Location:
- Melbourne, Vic
- Interested In:
- consulting offers, knowledge and training, expertise requests
Comment Wall (1 comment)
- At 12:39am on May 15, 2009,
Radha said…
- Hi Liam,
I have read most of your latest discussions, find it very useful. Since you have handled various roles in corporate finance and strategy, can you pls respond to my query titled - Financial Planning and Value Creation.
Thanks
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