MECC (2022) - Semi-Final 2 "What's Your Net Worth"

Description
Financial Modeling World Cup is an annual competition dedicated to financial modeling with a view of promoting healthy competition and education. FMWC challenges participants through a range of different types of questions. To answer everything correctly and win prizes, it takes a wide spectrum of skills and knowledge related to financial modeling. The competition is structured in a way that each participant accumulates points during the season by participating in as many Stages as they desire. At the end of the season (December), the overall winners are announced and the prize fund is distributed. Additional monthly prize money is distributed to the best-performing participants of each stage.
This is an actual case study that was presented to the participants of the Microsoft Excel Collegiate Challenge 2022, Semi-Final 2 (December 3).


Case study description:
You are just about to get your first “real” job and you want to project your net worth over the next five years. Rather than focusing on your net worth from a market-value perspective (which would include the present value of all future net cash flows), you choose to focus on the book-value perspective to understand what your assets and liabilities will look like over the next five years.

Using the details given in the model template, first project your monthly cash flow. Then determine your net worth each month. To do so, project your asset accounts (cash and the book value of your car) and liabilities accounts (student loan and car loan). The difference is your net worth (book value).



The downloadable file consists of the following:
-Task: PDF file with Case Materials; PDF file with Questions
-Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold


You can also buy tickets to participate in the future MECC at https://www.fmworldcup.com/microsoft-excel-collegiate-challenge/