Business Financing - Equity Analysis of a Project or Startup Venture

Equity Analysis of a Project or Startup Venture

This spreadsheet performs a basic capital budgeting analysis for a project or start-up, and computes Net Present Value (NPV), Internal Rate of Return (IRR), and Return on Investment (ROI).

Enter the yellow highlighted cells

Initial Investment

Cashflow Details

Initial Investment:

Revenues in year 1:

Opportunity cost (if any):

Var. Expenses as % of Rev:

Lifetime of the investment

Fixed expenses in year 1:

Salvage Value at end of project:

Tax rate on net income:

Depreciation method:
(1: St.line; 2: DDB):

If necessary, input the entire expense as a % of revenues.

Tax Credit (if any ):

Other invest. (non-depreciable):

Discount Rate

Approach:
(1: Direct; 2: CAPM):

Working Capital

1. Discount rate :

Initial Investment in Working Cap:

2a. Beta:

Working Capital as % of Rev:

b. Riskless rate:

Salvageable fraction at end:

c. Market risk premium:

d. Debt Ratio:

Initial Investment

e. Cost of Borrowing:

Investment

Discount rate used =

- Tax Credit

Net Investment

+ Working Capital

Investment Measures

+ Opp. Cost

NPV =

+ Other invest.

IRR =

Initial Investment

ROI =

YEAR

Growth Rates

Revenues

Do not enter

Fixed Expenses

Do not enter

Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.

Salvage Value

Equipment

Working Capital

Operating Cash Flows

Lifetime Index

Revenues

-Var. Expenses

- Fixed Expenses

EBITDA

- Depreciation

EBIT

-Tax

EBIT(1-t)

+ Depreciation

- Working Capital

NATCF

Discount Factor

Discounted CF

Book Value & Depreciation

Book Value (beg.)

Depreciation

Book Value (end.)

Automatic recalculation

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