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Cash Flow Distribution/IRR Modeling
Would someone be able to forward me a waterfall structure similar to what
Wilson described? Thanks in advance for any help you can offer. "wilson31416" wrote: Lenin, Two things: 1. The first thing that must be done is to track the equity outstanding at the beginning and end of every month. A1 = project cash flow for month A2 = beginning of month equity balance (0 in Month 1) A3 = equity advance, which will be the value contained in the first row if negative A4 = equity at end of month, which is the sum of the two rows above it A5 = cash flow after return of equity, which is the sum of the cash flow for the month and the equity advance for the month (A1+A3) B2 = beginning of month equity balance for month 2, which is the value contained in cell A4 etc, etc. 2. The IRR calculations need to target exactly the stated Hurdle Rate (12% is First Hurdle in this case). I think that the formula you wrote will give the IRR at the end of each month, while I need to include only those cash flows (from inception/first dollar invested) that will yield exactly the specified IRR. Does this make sense? -- wilson31416 ------------------------------------------------------------------------ wilson31416's Profile: http://www.excelforum.com/member.php...o&userid=16282 View this thread: http://www.excelforum.com/showthread...hreadid=319043 |
Would someone be able to forward me a waterfall structure similar to what
Wilson described? Thanks in advance for any help you can offer. "wilson31416" wrote: Lenin, Two things: 1. The first thing that must be done is to track the equity outstanding at the beginning and end of every month. A1 = project cash flow for month A2 = beginning of month equity balance (0 in Month 1) A3 = equity advance, which will be the value contained in the first row if negative A4 = equity at end of month, which is the sum of the two rows above it A5 = cash flow after return of equity, which is the sum of the cash flow for the month and the equity advance for the month (A1+A3) B2 = beginning of month equity balance for month 2, which is the value contained in cell A4 etc, etc. 2. The IRR calculations need to target exactly the stated Hurdle Rate (12% is First Hurdle in this case). I think that the formula you wrote will give the IRR at the end of each month, while I need to include only those cash flows (from inception/first dollar invested) that will yield exactly the specified IRR. Does this make sense? -- wilson31416 ------------------------------------------------------------------------ wilson31416's Profile: http://www.excelforum.com/member.php...o&userid=16282 View this thread: http://www.excelforum.com/showthread...hreadid=319043 |
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