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Cash Flow Return on Investment (CFROI) for a Firm Excel Model
  • Cash Flow Return on Investment (CFROI) for a Firm Excel Model
Originally published: 12/07/2016 10:55
Last version published: 02/02/2018 14:50
Publication number: ELQ-46606-2
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Cash Flow Return on Investment (CFROI) for a Firm Excel Model

This Excel model calculates CFROI (Cash Flow Return on Investment).

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,091
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 62
71 reviews11,178 views|Start the discussion!|Bookmark download for free
financecash flowcfroireturn on investment
Description
The user must define the following inputs:
- Fixed Assets
- Non-cash working capital
- Capitalized Operating leases
- Accumulated Depreciation on Assets
- Average Life of Assets
- Inflation rate (annual) during asset life
- Remaining Life of Assets
- Salvage value at end of life (as %)
- Current EBIT
- Current Depreciation
- Marginal Tax rate
- Nominal cost of capital

- Prof. Aswath Damodaran

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Further information

Outputs:
- Gross Investment (adjusted for inflation)
- Gross Cash Flow
- Expected Salvage Value
- Remaining Asset Life
- CF Return on Investment
- Real cost of capital


4.5 / 5 (71 votes)

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