• Originally published: 20/06/2016 10:52
Last version published: 02/02/2018 14:50
Publication number: ELQ-58034-2
View all versions & Certificate

# Capital Budgeting Analysis Excel Model

This Excel Model allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI

Description
With this Capital Budgeting Excel Model, compute the equity analysis of a project by giving data on your initial investment, working capital, growth rates, cashflow details and discount rate.

- Prof. Aswath Damodaran

Side note: If you have appreciated this model, feel free to give it a rating/review!

This Best Practice includes
1 Excel Model File

Discuss

## Further information

### Objectives

The objective of this Capital Budgeting Analysis Excel Model is to get the following output values:
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Return on Capital (ROC)

## Reviews

keyboard_arrow_downShow all

## Discussion feed for Capital Budgeting Analysis Excel Model

The user community and author are here to help. Go ahead!

• I refer to the CBA excel modle (https://www.eloquens.com/account/products). My comments.

1. The NPV (NPV = \$47,928) is ok but the IRR must be
IRR = 24.91%. The IRR is estimated using the NATCF (row 49) that does not include the salvage value for Equipment (\$10,000) and Working Capital \$14,641 in year 10.

2. Had the salvage value added in Row 49 - NATCF then the row 50 and 51 are redundant. we can directly estimate NPV from the revised NATCF (plus salvage value) by using @NPV function.
• Hi Gary!

(As this seems to be more a technical issue), we will intervene instead of Prof. Aswath Damodaran.

1/ Go to: https://www.eloquens.com/account/products
2/ Then click on the blue link with the text "Capital Budgeting Analysis Excel Model"

Hope this helps!

Let us know if you have any additional questions. You can reach out to us via Private Message here: https://www.eloquens.com/channel/eloquens-team

Best,
The Eloquens Team