In this lecture
- Build a simple project cash flow
- Test it against downside cases
- Present assumptions transparently
A model nobody can follow is not evidence
The purpose of a financial model in a proposal is to let someone else check the reasoning behind it. This lecture builds a cash-flow model from a real project's numbers, keeping every assumption on one visible sheet rather than buried in a formula.
Show the case where it fails
Appraisers trust a proposal that names the conditions under which it does not work. Running the downside - lower uptake, higher capital cost, delayed commissioning - and stating the point the project stops being viable earns more trust than withholding it, because they will find it either way.
Materials
Yours to keep, and usable away from the platform.
- Cash-flow model skeletonWorksheet · 240 KB
- Sensitivity testing notePDF · 560 KB
Design prototype - the attachments are placeholders and nothing downloads yet.
Lecture quiz
4 questions, plus 2 written questions at the end - taken whenever you are ready. This is what unlocks the next lecture.