Using Excel for modelling investment appraisal: financial maths

In this course module we look at how to conduct investment appraisal when modelling with Excel (= financial maths):  how can we best use Excel functions to, for example, decide whether to proceed with a new investment or calculate projected return.  In this module we:

  • Start simply, introducing fundamental investment appraisal concepts
  • Continue by looking at how Excel can be used in investment appraisal
  • Look at how Excel functions can be applied wrongly, resulting in incorrect investment choices (throughout this course module we highlight “Excel traps”).

The module starts slowly.  Some readers will be able to proceed very quickly, testing their knowledge and skipping on to the multi-choice online course quiz.  However past experience indicates that, aside from those that just use this exercise to check their understanding, many readers are likely to find at least something new or unexpected here.  When it comes to a topic as crucial as accurate investment appraisal, a little extra knowledge can be critically important!

Notes + worked Excel modelling exercises

The notes contained in this module are designed to be used with accompanying downloadable Excel spreadsheets, helping illustrate the concepts and providing room for your practise and workings.

Multi-choice course quiz

The course concludes with multi choice online course quiz designed to help develop your knowledge.

Start the financial modelling course material

Please click to start the course by looking at compounding in an Excel financial model. Alternatively, you can return back to the start of the Excel financial maths modelling course extract.