Microsoft Excel
Investment appraisal exercise
Average difficulty
This Microsoft Excel INVESTMENT APPRAISAL exercise is provided to allow potential course delegates to assess their suitability for the Wise Owl EXCEL BUSINESS MODELLING course only, and may not be reproduced in whole or in part in any format without the prior written consent of Wise Owl.
Exercise: Investment appraisal
A full answer to this exercise is provided as part of the training course!
| 1) | Download the files needed to start this exercise: exercise-667.zip (and click here if you experience any problems unzipping this file after downloading it). |
| 2) | You meet another friend in a pub, who wants to open a roller disco (why not?). This will require an investment of £40,000 from you at the end of year 1, after which time you will receive annual dividends of £10,000 at the end of each of the 7 subsequent years. All of this is shown in the file above, which you should open. |
| 3) | The blue cells are currently blank: |
You need to create formulae to calculate the NPV and IRR
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| 4) | Create formulae to show that:
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| 5) | Would you invest the money on this basis? |
Thank you for showing an interest in this Excel Business Modelling training course! As mentioned above, full answers to this and other exercises are provided on the course. On all Wise Owl scheduled courses delegates can take away these model answers (together with their own efforts!) on a free USB stick.
