From the course: Corporate Finance: Robust Financial Modeling

Unlock the full course today

Join today to access over 24,000 courses taught by industry experts.

Building the calculations

Building the calculations

- Say you've partially completed a financial model, a lifecycle costing for a customer relation management system or just CRM. You've populated the business rules and are now at the last important step, which is to build the calculations. So let's go ahead and complete this model. Make sure that the Excel exercise file for this video is open. On the business rules worksheet, you'll notice some assumptions that we've prepared a little earlier. If we now go back to the model worksheet, you'll see that we have linked some of these cells to the information in the business rules worksheet. For example, let's go ahead and select cell D6. You'll notice it's linked to cell C4 in the business rules worksheet. This is the discount rate that we wish to use. Let's go ahead and check it out. 2.81%. Let's go back to the model worksheet. In cell C14, you'll notice that we have a baseline maintenance cost of $850,000, but…

Contents