Forums / Property Investing / General Property / IP Spreadsheet that graphs IRR, NPV, and cash flow

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  • Profile photo of thefirstbrucethefirstbruce
    Member
    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    I’ve been working on a spreadsheet to help evaluate IP deals.

    http://www.tekserv.com.au/bruce/IP1.zip
    or
    http://www.tekserv.com.au/bruce/IP1.xls

    I’m a visual sort of guy and struggle to deal with Net Present Value and Internal Rate of Return as abstractions, so have represented them graphically.

    I’d be interested in any feedback regarding the usefulness of this graphical simulator.

    At the moment, the simulator cannot reflect realistic cyclic changes in rates and CPI adn growth, but I may develop that.

    BTW, the input worksheet looks complicated, and I’ll clean that up in time.

    Cheers
    Bruce

    Bruce
    Mooloolaba, Qld

    Profile photo of voigtstrvoigtstr
    Member
    @voigtstr
    Join Date: 2005
    Post Count: 176

    Crikey! thats a whopper of a spreadsheet!
    I’ve downloaded it and will have a play with it to see if I can make sense of it.

    Nice Excell skills though!

    More stuff on the voigtstr at http://users.bigpond.net.au/voigtstr

    Profile photo of RhysQLDRhysQLD
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    @rhysqld
    Join Date: 2004
    Post Count: 53

    I look forward to having a play with it.

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi thefirstbruce
    not had a play yet but will have a look and send you my modified sheet

    here to help

    Profile photo of thefirstbrucethefirstbruce
    Member
    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    Thx Gross.

    Any input appreciated.
    I am still editing for errors. Though I don’t expect to find too many more. Tonight I revised calculation of NPV. And have cross checked and it seems to be right now.

    Some of the stamp duty values are out of date for some of the states. NSW and Qld are ok though.

    There’s a few accounting issues I could do with advice on. i.e. the consistent application of inflation to future values, esp when used in IRR and NPV calcs. And a realistic choice for the discount rate in NPV, that considers the illiquid nature of property, future risk of negative events, and inflation’s effect on future dollar value.

    I have seen one formula for NPV discount rate:

    Discount Rate = Cost of Capital.
    The formula for the (Nominal) Discount Rate
    = (1 + Inflation Rate) * (1 + Real Discount Rate) – 1

    Bruce
    Mooloolaba, Qld

    Profile photo of thefirstbrucethefirstbruce
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    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    P.S.

    http://www.tekserv.com.au/bruce/Graph.gif
    this is what the graphs should look like if they aren’t rendering properly on your version of Excel.

    Bruce
    Mooloolaba, Qld

    Profile photo of thefirstbrucethefirstbruce
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    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    I have now updated the spreadsheet’s simulator.

    It looks like this:
    http://www.tekserv.com.au/bruce/IP.gif

    Bruce
    Mooloolaba, Qld

    Profile photo of pete152pete152
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    @pete152
    Join Date: 2004
    Post Count: 15

    That is a beauty Bruce!! Thanks,
    Peter

    Profile photo of thefirstbrucethefirstbruce
    Member
    @thefirstbruce
    Join Date: 2003
    Post Count: 133

    Thanks, this is the latest GUI.
    Have ironed out some more bugs, and checked the accuracy of some calculations, such as NPV and IRR.
    http://www.tekserv.com.au/bruce/IP1.gif

    Bruce
    Mooloolaba, Qld

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