How to solve cash flow estimation exam questions

This video walks finance students through solving a cash flow estimation problem step-by-step. Using a real-world-inspired scenario involving Dunder Mifflin, you'll learn how to evaluate a potential investment by calculating key financial metrics like initial investment, operating cash flows, and tax shields. The video also covers various methods for discounting cash flows, including manual calculations and financial calculator techniques. By the end, you'll understand how to compute net present value (NPV) and make informed investment decisions.

Previous

Explaining net working capital (NWC), Change in NWC, and NWC Recapture

Next

How to solve cash flow estimation exam questions