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Grand Rapids, MI | Is it the formulas you want help with, or understanding the concepts? The former is really pretty easy in Excel, the latter is probably beyond the scope of what can be taught on this forum.
The formula the paper gives for COC is more commonly refered to as the after tax WACC (Weighted Average Cost of Capital) you may try googling that for more ideas. The formula is really pretty straightforward once you have the rates and weights of debt and equity financing and the tax rate.
For NPV, there is a =NPV function in Excel that makes this pretty easy once you have the periodic cash flows figured. The only caution is that it is looking for the stream of cash flows at the end of the periods. This means that you would put the year 1 to x cash flows in the NPV function and add the year 0 cash flows outside the NPV function. If you have a simple spreadsheet with a few cash flows try applying the NPV function and post it here and I will check it for you if you want.
If you are looking for help on how to develop the cash flows, or come up with the numbers behind the WACC you might look for a finance textbook if you are good at self teaching, or consider enrolling in a finance class at your local college. Alternatively you can just hire this work done by a professional in this field, like myself. I do a lot of should I buy x peice of equipment vs keep current or buy y peice of equipment by using NPV analysis. Something like that if you can feed me most of the numbers would only be an hour or so to put together and explain, so the cost is typically less than a couple hundred dollars.
Edited by lorenk 2/24/2010 09:53
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Spreadsheet equipment financial calculations (complicated)
