Video Tutorial: Excel Modules 11 & 12
Two modules in one video. Work through them in order.
Time Value of Money
- Why a dollar today is worth more than tomorrow
- Present value and future value calculations
- Using PV, FV, and NPV functions in Excel
- Applying TVM concepts to investment decisions
Scenario and Sensitivity Analysis
- Building best, base, and worst case scenarios
- Using data tables for sensitivity testing
- Identifying which variables drive the most impact
- Presenting analysis results clearly
💡 Tips for This Video
- Have Excel open and follow along as you watch
- Pause after each concept and try it yourself before moving on
- In Module 12, build your own scenario table using a real investment or business example
Try it with a real example
Open the example. Open the course calculator prefilled with $100, five years, and an illustrative 7% rate. Rebuild that future-value example in Excel, then change only the rate to 6% and compare the two outputs. Neither rate is a return forecast.
Key takeaways
- Match a discount rate’s period to the cash-flow periods.
- Change one assumption at a time for a simple sensitivity comparison.
- A scenario is an estimate under assumptions, not a promised outcome.
Check your understanding
Answer each question, then open the explanation.
1. What should you check when discounting a series of cash flows?
Show answer and why
Answer: That the rate and cash-flow timing use compatible periods.
Why: An annual rate cannot be used as a monthly rate without appropriate conversion.
2. How can you isolate the effect of one assumption?
Show answer and why
Answer: Change that assumption while keeping the others fixed.
Why: The resulting difference can then be attributed to that input within the model.
3. Does a scenario result predict exactly what will happen?
Show answer and why
Answer: No. It calculates what follows from the selected assumptions.
Why: Different assumptions or actual events can produce a different outcome.
AI responses are for educational purposes. Always verify with official course materials.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
Sources and reference material
Primary sources and original reference material for the concepts discussed on this page.
References added 14 October 2026.
AI responses are for educational purposes. Always verify with official course materials.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
This lesson teaches a concept. It is general education, not advice about your money. Before you act on anything you learn here, speak to someone licensed.
