1

2 HOME FILL
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
 95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
Controllable Input
Unit Price 29
Uncontrollable Inputs
Units Sold 700
Unit Variable Cost 8
Fixed Costs 12000
Performance Measure
Net Cash Flow 2700

Data
What if
Goal seak
seek Net cash flow to 5000
by changing unit sold

Goal seek method

Check and find break ev
Goal seek method
Check and find break even point 1. By changing Units sold ?
2. By changing Unit price ?
What if Controllable Input Unit sold
Data table Unit Price 29
Just coloumn input cell as C4, units sold Uncontrollable Inputs 400
Units Sold 700 450
Unit Variable Cost 8 500
Fixed Costs 12000 550
Performance Measure 600
Net Cash Flow 2700 650
700
750
800
850
900
950

use successive data tables to refine the search

 Net Cash Flow Unit sold Net Cash Flow
2700 2700
550
560
560
570
580
590
600

tables to refine the search for the $0 threshold use successive data tables to refine the search for the $0 threshold
 Unit sold Net Cash Flow
2700
570
571
572
573
574
575
576
577
578
579
580

e $0 threshold We conclude that we must sell at least 572 units to break even.
What if Controllable Input Unit sold
Data table Unit Price 29
Just coloumn input cell as C4, units sold Uncontrollable Inputs 500
Draw chart Units Sold 700 501
Unit Variable Cost 8 502
Fixed Costs 12000 503
Performance Measure 504
Net Cash Flow 2700 505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
Net Cash Flow
2700
Chart Title
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
500 505 510 515 520 525 530 535 540 545 550 555 560 565 570 575 580 585 590 595 600
80 585 590 595 600
What if Controllable Input Stage 1
Data table Unit Price 29 2700
TWO-VARIABLE DATA TABLE Uncontrollable Inputs 6
Units Sold 700 6.5
Unit Variable Cost 8 7
Fixed Costs 12000 7.5
Performance Measure 8
Net Cash Flow 2700 8.5
U V Cost 9
9.5
10
10.5
11
11.5
12
12.5
13
13.5
 Units sold
500 525 550 575 600 625 650 675
 500 525 550 575 600 625 650
6 -500 75 650 1225 1800 2375 2950
6.5 -750 -187.5 375 937.5 1500 2062.5 2625
7 -1000 -450 100 650 1200 1750 2300
7.5 -1250 -712.5 -175 362.5 900 1437.5 1975
8 -1500 -975 -450 75 600 1125 1650
8.5 -1750 -1237.5 -725 -212.5 300 812.5 1325
9 -2000 -1500 -1000 -500 0 500 1000
9.5 -2250 -1762.5 -1275 -787.5 -300 187.5 675
10 -2500 -2025 -1550 -1075 -600 -125 350
10.5 -2750 -2287.5 -1825 -1362.5 -900 -437.5 25
11 -3000 -2550 -2100 -1650 -1200 -750 -300
11.5 -3250 -2812.5 -2375 -1937.5 -1500 -1062.5 -625
12 -3500 -3075 -2650 -2225 -1800 -1375 -950
12.5 -3750 -3337.5 -2925 -2512.5 -2100 -1687.5 -1275
13 -4000 -3600 -3200 -2800 -2400 -2000 -1600
13.5 -4250 -3862.5 -3475 -3087.5 -2700 -2312.5 -1925
 675
3525
3187.5
2850
2512.5
2175
1837.5
1500
1162.5
825
487.5
150
-187.5
-525
-862.5
-1200
-1537.5
What if Controllable Input Stage 1
Data table Unit Price 29 2700
TWO-VARIABLE DATA TABLE Uncontrollable Inputs 6
Units Sold 700 6.5
Unit Variable Cost 8 7
Fixed Costs 12000 7.5
Performance Measure 8
Net Cash Flow 2700 8.5
U V Cost 9
9.5
10
10.5
11
11.5
12
12.5
13
13.5
 Units sold
500 525 550 575 600 625 650 675
Stage 2
2700 600 610 620 630 640 650 660 670
6
6.25
6.5
6.75
7
7.25
7.5
7.75
8
8.25
8.5
8.75
9
 Stage 3
680 690 2700 660 661 662 663 664
6
6.05
6.1
6.15
6.2
6.25
6.3
6.35
6.4
6.45
6.5
6.55
6.6
6.65
6.7
6.75
6.8
6.85
6.9
6.95
7
665 666 667 668 669 670 671 672 673 674
675 676 677 678 679 680 681 682 683 684
685 686 687 688 689 690

Percentage change
 686 687 688 689 690
3778 3801 3824 3847 3870
0.608788 0.605104 0.601464 0.597868
What if Controllable Input Stage 1
Data table Unit Price 29 2700
TWO-VARIABLE DATA TABLE Uncontrollable Inputs 6
Units Sold 700 6.5
Unit Variable Cost 8 7
Fixed Costs 12000 7.5
Performance Measure 8
Net Cash Flow 2700 8.5
U V Cost 9
9.5
10
10.5
11
11.5
12
12.5
13
13.5
 Units sold Draw 3D plot
500 525 550 575 600 625 650 675
Draw 3D plot Unit Sold
500 525 550 575 600 625 650 675
6 -500 75 650 1225 1800 2375 2950 3525
6.5 -750 -187.5 375 937.5 1500 2062.5 2625 3187.5
7 -1000 -450 100 650 1200 1750 2300 2850
7.5 -1250 -712.5 -175 362.5 900 1437.5 1975 2512.5
8 -1500 -975 -450 75 600 1125 1650 2175
8.5 -1750 -1237.5 -725 -212.5 300 812.5 1325 1837.5
UVC 9 -2000 -1500 -1000 -500 0 500 1000 1500
9.5 -2250 -1762.5 -1275 -787.5 -300 187.5 675 1162.5
10 -2500 -2025 -1550 -1075 -600 -125 350 825
10.5 -2750 -2287.5 -1825 -1362.5 -900 -437.5 25 487.5
11 -3000 -2550 -2100 -1650 -1200 -750 -300 150
11.5 -3250 -2812.5 -2375 -1937.5 -1500 -1062.5 -625 -187.5
12 -3500 -3075 -2650 -2225 -1800 -1375 -950 -525
12.5 -3750 -3337.5 -2925 -2512.5 -2100 -1687.5 -1275 -862.5
13 -4000 -3600 -3200 -2800 -2400 -2000 -1600 -1200
13.5 -4250 -3862.5 -3475 -3087.5 -2700 -2312.5 -1925 -1537.5
Finance concept for finance students, for more details
please refer finance text books

Terminal value (TV) is the value of an asset, business, or

project beyond the forecasted period when future cash
flows can be estimated. Terminal value assumes a
business will grow at a set growth rate forever after the
forecast period. Terminal value often comprises a large
percentage of the total assessed value.
Terminal value (TV) determines a company's value into
perpetuity beyond a set forecast period—usually five
years.
 SENSITIVITY ANALYSIS 2777.8
0%
FREE CASH FLOW 250 1%
WEIGHTED AVERAGE COST OF CAPITAL 12% 2%
GROWTH 3% 3%
growth
4%
Terminal Value 2777.778 5%
6%
7%
 wacc
8% 9% 10% 11% 12% 13% 14% 15%

Try changing weighted average or growth rates

Sensitivity Analysis

Assumptions
Chairs sold
$ 40,000 500 750 1000
Chair sold 1000 $ 75.00
Price Chair $ 150 $ 100.00
Cost Chair $ 50 Price $ 125.00
Store Rent $ 10,000 $ 150.00
Payroll $ 50,000 $ 175.00
$ 200.00
Profit and loss statements

Revenue $ 150,000
Cost of sales $ 50,000
Gross Profit $ 100,000
Fixed cost $ 60,000
Operating Profit $ 40,000
1250 1500
Fixed AD Making Cost 200
Variable TV Ad Show Cost 0.5
Number of times ad shown 1000
Total Variable cost 500
Toatal Advertisement cost 700

Selling Price to client 0.9

Total Revenue 900 Selling price to client
Profit 200 200 0.1 0.2 0.3
50
200
300
400
Number of
times Ad
shown 500
600
700
800
900
1000
1100
1200
1300
1500
8000
Selling price to client
0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3
1.4 1.5 1.6 2 5