Installment Comparable Model
Originally published: 06/06/2020 16:16
Publication number: ELQ-21729-1
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Installment Comparable Model

This model can be used to calculate the PV of cash inflows from sales. E.g: real-estate or any installment sales

Description
You will enter the assumptions which include ( unit price - tenor - choose the payment terms - % of advance & date of advance and the discount rate ) the model will calculate the number of installment and its value and the total interest across the tenor or duration of the contract and the % of the total interest plus the total present value for the total cash inflows.

In addition, there is a table for base case terms which calculate the present value in a short way and it will calculate the difference between the base case installment terms and the chosen assumptions so this figure can be the max discount can be granted to the customer.

There is another two tables for running scenarios for the present value of cash inflows. the first table calculate PV in terms of change in number of years for installment and % of advance payment. the second table calculate PV in terms of change in number of years for installment and the discount rate.

Finally I hope you like it and be helpful for you in your work.

This Best Practice includes
1 Excel Model

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