Fixed Asset Request Form WITH ROI, NPV, Cash Flow, & IRR
Originally published: 31/05/2021 08:55
Publication number: ELQ-31254-1
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Fixed Asset Request Form WITH ROI, NPV, Cash Flow, & IRR

Save yourself tons of time and frustration with this ready-to-go template for business capital requests & ROI analysis.

Description
This excel file allows you to first capture all business inputs for a capital request. Then, the formula determines if the expenses qualify for capitalization or must be expensed.

Data validation, clear inputs, and checkboxes ensure that users can seamlessly enter all required information. Users can enter all costs and details to provide finance and leadership teams with the information and analysis required for prompt and effective decision-making.

The second sheet features an easy to use and comprehensive calculation table for:
1. Net Present Value (NPV),
2. Internal Rate of Return, (IRR) and
3. Payback Period

The results are featured in a summary table with conditional formatting and dynamic graphs.

The third sheet features customizable reference tables that are configured for easy-to-use user dropdowns on the asset form.

All pages are preformatted to print on 1 page for user ease.
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One of the most important concepts every corporate financial analyst must learn is how to value different investments or operational projects. The analyst must find a reliable way to determine the most profitable project or investment to undertake.

The net present value (NPV) is a valuation/feasibility metric calculated by subtracting the present values of cash outflows from the present values of cash inflows over a period of time. It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss. Only investments with positive NPV values should be considered.

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. Assuming the costs of investment are equal among the various projects, the project with the highest IRR would probably be considered the best and be undertaken first.

The payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment or to reach the break-even point. But there is one problem with the payback period. It ignores the time value of money, unlike net present value & internal rate of return.

This Best Practice includes
1 Excel Workbook

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  • Amir Ganic(last updated: 03/06/2021 14:12)

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