The key points from this module are as follows:

•The main types of financial models that can be built using Microsoft Excel are as follows:
-Project Finance Model
-Pricing Model
-Cashflow Model and Integrated Financial Statements
-Valuation Model

•Errors develop in Excel models for the following reasons:
-Over-complexity
-Re-using Previous Models
-Delegation of Responsibility
-A Lack of Boundaries

•The five key steps that should be taken before starting to build a model are as follows:
-Identify all the Stakeholders in the Model
-Define the Problem that the model will Address
-Agree on the Assumptions for the Model
-Get Good Data
-Plan your Outputs

•Projects, products and services go through a lifecycle with the following stages:
-Development
-Introduction
-Growth
-Maturity
-Decline

•The three main causes of problems in Net Present Value (NPV) models are:

-The Input Data
-The Discount Rate
-Inflation