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Simple Financial Model for a Company

Rick Kossik -

This is a very simple financial model for a company. It is not detailed, but shows how GoldSim can be used to model a company. In this case, the company is a mock business which has a five year start-up prior to the start of big project. The model simulates costs and revenues with depreciation, overhead, taxes, and interest on a loan. The output of the model is internal rate of return (IRR), net present value (NPV) and net cash as a function of time. More complex models would represent many of the inputs as probability distributions (they are all constants in this model), and would add more detailed models for revenues and costs (these are entered as being constant in time).

Experience Level:

Novice

Download the Model File:

Tags:

  • financial
  • cash flow
  • conditional
  • revenue
  • overhead
  • depreciation
  • earnings
  • EBIT
  • EBITDA
  • tax
  • NPV
  • IRR
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