Financial Modeling

Loan Model Investment Model Discount Model

(FV) (PV)

Payment Lump Sum Net present value (NPV)

Principal Series of Deposit

Interest LS + Deposit
 INPUT Period principal
Car Price RM 130,000.00 (monthly)
monthly 1 (RM906.90)
down payment (10%) RM 13,000.00 2 (RM909.83)
interest rate 3.88% 0.3233% 3 (RM912.78)
period (years) 9 108 4 (RM915.73)
5 (RM918.69)
OUTPUT 6 (RM921.66)
PV RM 117,000.00 7 (RM924.64)
FV RM - 8 (RM927.63)
monthly payment / PMT RM1,285.20 9 (RM930.63)
total payment RM 151,801.85 10 (RM933.64)
total interest RM 21,801.85 108 (RM1,281.06)

first 5 month principle (RM4,563.93)

first 5 month interest (RM1,862.08)
 total (monthly
interest payment)
(RM378.30) (RM1,285.20)
(RM375.37) (RM1,285.20)
(RM372.43) (RM1,285.20)
(RM369.47) (RM1,285.20)
(RM366.51) (RM1,285.20)
(RM363.54) (RM1,285.20)
(RM360.56) (RM1,285.20)
(RM357.57) (RM1,285.20)
(RM354.57) (RM1,285.20)
(RM351.57) (RM1,285.20)
(RM4.14) (RM1,285.20)

(RM4,563.93)
(RM1,862.08)
 INPUT INPUT
initial 30000 initial 0

monthly deposit RM - monthly deposit RM 500.00

interest rate 6% interest rate 6%
period (years) 5 period (years) 5

OUTPUT OUTPUT
lump sum RM 30,000 monthly deposit RM 500
FV RM40,146.77 FV RM34,885.02
 INPUT
initial 12000
monthly monthly
monthly deposit RM 300.00
0.5% interest rate 6% 0.5%
60 period (years) 5 60

OUTPUT
lump sum RM 12,000 & monthly deposit RM 300
FV RM37,117.21
 INPUT Year 0
fixed income yield 5% Cash Flow PURCHASE
term (years) 10 Net CF RM (752,904.48)
rental income (yearly) RM 18,000.00 -ve CF
FV RM 1,000,000.00 Discounting
discount rate 5%
NPV RM 0.00
OUTPUT
PV RM752,904.48

If the price is lower than the PV, it should buy.

EXAMPLE

year 0 1 2 3 4
CF -50000 -5000 15000 20000 21000

DR 10%
NPV 881.087357420918
 1 2 3 4 5 6 7 8 9 10

18000 18000 18000 18000 18000 18000 18000 18000 18000 1018000
+ve CF +ve CF +ve CF +ve CF +ve CF +ve CF +ve CF +ve CF +ve CF +ve CF

5
22000
Local Bank
INPUT

monthly
FV RM 200,000.00
interest rate 5.25% 0.4%
period (years) 12 144

OUTPUT
monthly deposit RM999.96

Payment in 10 years RM 119,995.57

Monthly Installment
Years principal interest yearly deposit
8 (RM17,718.55) RM5,334.19 (RM12,384.36)
9 (RM18,648.77) RM6,264.42 (RM12,384.36)
10 (RM19,627.83) RM7,243.48 (RM12,384.36)
11 (RM20,658.30) RM8,273.94 (RM12,384.36)
12 (RM21,742.86) RM9,358.50 (RM12,384.36)
Stock Market
INPUT

FV RM 200,000.00
interest rate 7.00%
period (years) 12

OUTPUT
PV RM 88,802.39

RM999.96
8
9
10
11
12
(a) INPUT OUTPUT
Purchase cost RM (200,000,000.00) Year
period (years) 20 0
days in a year 350 =365-15 1
seat booked per trip 304 =320*95% 2
revenue per passenger per trip RM 400.00 3
daily trip (1 round trip= 2 way) 2 4
5
Annual revenue: 6
= 350 days*2 way/trip*seat per RM 85,120,000.00 7
trip*revenue per passenger 8
9
Annual operation cost: 10
fuel RM 2,800,000.00 11
flight crew RM 1,000,000.00 12
food and beverages RM 200,000.00 13
maintainance RM 800,000.00 14
others RM 200,000.00 15
TOTAL RM 5,000,000.00 16
17
return 14% per year 18
19
NPV RM 330,645,219.80 20
Yes. The company should buy it.

(b) INPUT OUTPUT

Purchase cost RM (200,000,000.00) Year
period (years) 20 0
days in a year 350 =365-15 1
seat booked per trip 256 =320*80% 2
revenue per passenger per trip RM 400.00 3
daily trip (1 round trip= 2 way) 2 4
5
Annual revenue: 6
= 350 days*2 way/trip*seat per RM 71,680,000.00 7
trip*revenue per passenger 8
9
Annual operation cost: 10
fuel RM 2,800,000.00 11
flight crew RM 1,000,000.00 12
food and beverages RM 200,000.00 13
maintainance RM 800,000.00 14
others RM 200,000.00 15
TOTAL RM 5,000,000.00 16
17
 return 14% per year 18
19
NPV RM 241,630,345.18 20
Yes. The company should buy it.

(c) INPUT OUTPUT

Purchase cost RM (200,000,000.00) Year
period (years) 20 0
days in a year 350 =365-15 1
seat booked per trip 125.7043 2
revenue per passenger per trip RM 400.00 3
daily trip (1 round trip= 2 way) 2 4
5
Annual revenue: 6
= 350 days*2 way/trip*seat per RM 35,197,200.32 7
trip*revenue per passenger 8
9
Annual operation cost: 10
fuel RM 2,800,000.00 11
flight crew RM 1,000,000.00 12
food and beverages RM 200,000.00 13
maintainance RM 800,000.00 14
others RM 200,000.00 15
TOTAL RM 5,000,000.00 16
17
return 14% per year 18
19
NPV RM 0.00 20
Average seating rate:
125.7043
39.28%
320

(d)
 -ve CF +ve CF Net CF
RM (200,000,000.00) RM (200,000,000.00)
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00
RM (5,000,000.00) RM 85,120,000.00 RM 80,120,000.00

-ve CF +ve CF Net CF

RM (200,000,000.00) RM (200,000,000.00)
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00
RM (5,000,000.00) RM 71,680,000.00 RM 66,680,000.00

-ve CF +ve CF Net CF

RM (200,000,000.00) RM (200,000,000.00)
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
RM (5,000,000.00) RM 35,197,200.32 RM 30,197,200.32
 5
22000