Learn how to create spreadsheet models for cash flow, net present value (NPV) and pricing in this free online course.

The modern business environment is full of challenges and investors are continuously searching for viable investment opportunities to maximise returns on their capital. So, how does one decide on what type of business to engage with when faced with several options? In this free online Microsoft Excel certification, you will learn how to develop Excel spreadsheet models that help in this decision-making process. Firstly, you will be taken through the principles of spreadsheet model building and the key elements that should appear in every spreadsheet model. After that, you will be introduced to the different types of financial models and the risks involved in developing and using these models. The key preliminary steps that should be undertaken before building a model will then be explored. Your training is then put into practice by carrying out an exercise that will help you understand these steps better. This will pave the way for the topic of pricing a model, where you will study the relationship between price and demand of a product or service and how to set different price points to optimize returns without losing business to competitors. You will go through several examples and an exercise to help cement your learnings.

The Microsoft Excel training then uncovers the methods used to create cash flow models, and you will appreciate the challenges faced in building such models. The main MS Excel functions used in this process will be presented to you, and a recommendation will be made on the type of formulas to use, depending on the version of Excel you have. With this knowledge, you will then study the factors to consider when creating an income statement and balance sheet. An exercise on developing a cash flow model combined with an income statement and a balance sheet will be done. The exercise’s workings and answers are then presented to you for you to check your understanding before moving on to spreadsheet models for a project lifecycle which focuses on periods of a year and longer. 

The last part of this Microsoft Excel course discusses valuation models and how to select a discount rate to calculate the net present value (NPV) of a project or business. The leading causes of problems in NPV models will be presented as well as the concept of forecasting. You will then learn how to compare projects and different investment options with the help of another set of examples. This Microsoft Excel training course is specially designed for practising finance staff, managers, investment analysts and business people. The skills obtained here will help you make quicker and better investment decisions in your businesses. For students of business finance and management, enrolling in this course will lay a firm foundation for your career as you continue to grow through learning and practice.