DCF

Written by:Abraham A.
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  1. Estimating Incremental Free Cash Flows
    This tutorial details the steps required for ascertaining incremental cash flows before performing discounted cash flow analysis. These free cash flows are estimates and are future looking amounts thus one is not 100% sure of such amounts in fact materialize.
  2. Find missing cash flow when IRR is known
    This tutorial explains the methods using which one can find missing cash flow given that IRR is known
  3. Find missing cash flow when NPV is known
    This tutorial explains the methods using which one can find missing cash flow given that NPV is known
  4. Internal Rate of Return
    This tutorial on internal rate of return explain what IRR is, and how to calculate IRR from net cash flows. The illustrated tutorial highlights two different approaches for calculating IRR. The first and foremost explains the IRR calculation with the Newton Raphson method, the IRR formula is given that you can use to calculate IRR for any net cash flows. The second approach uses hit and trial method that makes use of linear interpolation to arrive at an approximate value of IRR. Both approaches are illustrated with IRR Calculation for hypothetical IRR example.
  5. IRR calculation using Quadratic Formula
    This tutorials explains how one can calculate IRR or the internal rate of return using the Quadratic Formula
  6. Modified Internal Rate of Return
    This tutorial explains modified internal rate of return in detail with example calculation. The formula for MIRR is provided and you can use it to find MIRR.
  7. Net Future Value
    This tutorial explains net future value in detail from the perspective of NFV as a capital budgeting discounted cash flow analysis method and then illustrates NFV of an ordinary annuity. You get to see the NFV formula for each case along with sample calculation.
  8. Net Present Value
    This tutorial explains net present value in detail from the perspective of NPV as a capital budgeting discounted cash flow analysis method and then illustrates NPV of an ordinary annuity. You get to see the NPV formula for each case along with sample calculation.
  9. NPV, IRR, MIRR, B/C ratio, Payback Period
    This article shows pros and cons of using different DCF analysis techniques such as IRR, MIRR, NPV, Benefits to Costs ratio and Payback Period
  10. Profitability Index
    This tutorial explain the profitability index method in capital budgeting. The method is also called the benefit to cost ratio. You will see an example calculation of profitability index
  11. Payback Period
    This tutorial explains in detail the undiscounted payback period method. You will view the payback period formula for annual, quarterly, monthly, weekly and daily cash flows.
  12. Discounted Payback Period
    This tutorial explains in detail the discounted payback period method. You will view the payback period formula for annual, quarterly, monthly, weekly and daily cash flows.
  13. Replacement Chain Analysis
    This tutorial on Replacement Chain Analysis explains the NPV method used for when comparing mutually exclusive projects with unequal lives. The example calculation detail the process of finding NPV for projects with unequal lives.
  14. Weighted Average Cost of Capital
    This tutorial details how corporations and small businesses can arrive at a figure for the weighted average cost of capital. The WACC is a weighted average of three different costs namely cost of equity, cost of preferred stock and cost of debt. The cost of debt is usually taken as an after tax figure to reflect the true cost of debt.
Location: Tutorials