Webcast "Cash flow modeling"
Participants of the online seminar "Cash flow modeling" acquire a profound knowledge of the essential methods of investment calculation. They learn to map these methods in Microsoft Excel™ and to implement them in practical solutions for their everyday professional life.
|Seminar||Webcast "Cash flow modeling"|
|Dauer||total approx. 5 hours|
|Zahlungsbedingungen||from 455,- €|
+49 (0) 6723 email@example.com
Where and when
Time-independent - you can start at any time – – IREBS Digital,
WHAT CAN I EXPECT?
In self-study, guided by an experienced lecturer, you will acquire profound knowledge of cash flow modeling, learn to implement this in Microsoft Excel and apply it in practical solutions for your everyday professional life.
Step by step, we introduce you to the elements of a cash flow model and illustrate the implementation with concrete examples in Microsoft Excel. To do this, you will deepen the relevant know-how from investment theory in an application-oriented manner and transfer it into a calculation scheme. On this basis, you will implement special cases from practice. This provides you with a comprehensive toolbox to answer the questions that arise in your everyday professional life in a targeted manner. This also includes weighing up the modeling depth and interpreting analysis results.
plus 19 percent VAT
For the seminar you will need a computer with Windows 10 or higher and Microsoft Office 2016. The seminar materials will be provided in digital form.
In the webcast, you will learn to model the cash flow of real estate and internalize how loans work in cash flow models as well as the basic effect of taxes. In detail, you will implement individual rental contracts and staggered capex. Afterwards, you use the net present value/cash value and various other yield and credit ratios to interpret your set up cash flow. Risk analyses sensitivities, scenarios and simulations are also an important aspect. For all calculations, you use standard Microsoft Excel functions, the knowledge of which is useful beyond cash flow modeling.
The webcast comprises a net lecture time of approximately five hours. The webcast is available to you for eight weeks. After working through the webcast, you will receive a certificate of participation.
Cash flow modeling
Duration: approx. 5 hours – Professor Leo Cremer
Participants will learn how the net present value model works and, after this block, will be able to assess how the parameters it contains influence each other. Together, they develop a DCF model in Microsoft Excel™ and, based on this, a model for calculating the return using the internal rate of return.
At first a simple basic model is built up in the webcast, which is successively expanded and brought ever closer to the "real" world afterwards. The participants learn how a DCF model is converted into an interest rate or a return (IRR) and to interpret the significance of such a calculated return. In addition, the participants learn under which conditions they can use the methods they have learned and when not.
Learning steps: Investment analysis concepts
- Cash flow modeling is intended to support investment decisions. The individual learning modules are oriented towards this goal and are motivated from this goa.
- Basic model:
- The starting point of the cash flow model are the cash flows from real estate. The jointly created basic model records those cash flows from transactions, i.e. purchase and sale, and those from operational management, i.e. rent and operation.
- Since the cash flows from a property change over time, these dynamics also belong in a cash flow model. One of our main focuses is to depict the development of rental payments on a general and individual basis; from this we also build a bridge to the estimation of the sales price.
- Key figures:
- In order to make investments easier to compare, a variety of key figures have been developed that are based on cash flows. Several variants of the present value and the rate of return are presented, implemented, and analyzed.
- The investment often includes financing, therefor mortgages and other financing instruments are an important building block in real estate investments. For the central loan variants, we will implement the cash flows from financing, examine the leverage effect and incorporate widespread credit ratios.
- We supplement the model components of real estate and credit with the aspect of income taxes. Since their effect is very individual, the basic aim here is to supplement the typical depreciation structure and income statement.
- A great advantage of an Excel-based cash flow model is that it is relatively easy to calculate alternative scenarios. Therefore, we will work out several possibilities to include meaningful risk analyses up to simulation.
- Now it's your turn: design, implement and interpret an individual cash flow model for your specific situation.
Professor Leo Cremer
Professor for Mathematical Methods in Construction
and Real Estate Management at Hochschule RheinMain
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