Investment and Business Valuation 1.0 - User Guide and FAQ

Frequently Asked Questions - Investment and Business Valuation

1. Why can't I see all of the cell formulas?
   The worksheets are protected to ensure the robustness of operation. However, critical formulas are outlined in the embedded help prompts.
   
   
2. When I open the file, it asks me if I want to enable macros. What should I do?
   You need to click "Yes" to accept macros in order to run the tools.
   
   
3. When I open the file, it doesn't ask me if I want to enable macros. Therefore, the macros are disabled. What should I do?
   In this case you need to set your macro security settings to Medium. You can do this by opening a blank workbook and choosing Tools >> Options >> Security >> Macro Security, and selecting the Medium level. You should now be presented with the option to enable macros on opening the template file.
   
   
4. Why can't I see the VBA code?
   The VBA code has been protected to ensure the robustness of operation and for intellectual property purposes.
   
   
5. Can other users open the models that I have completed?
   When other users open the model for the first time on another computer, they are presented with the 30-day trial version. After 30 days, if they have not registered the model, they will still be able to view completed models, but not run processes. In this way, the templates can be freely distributed to clients and/or interested parties to view results.
   
   
6. Why does the model attribute value to the "PV of capital commitments after year 5"?
   A unique feature of the model is to fully account for all actions taken during the forecast period. Therefore the impact of any remaining capital commitments after year 5 (resulting from actions taken before year 6) are discounted back to the end of year 5 and included in the overall valuation.
   
   
7. What is the "finite" terminal valuation option, and when should I use it?
   A unique feature of the model is to provide an alternative to the traditional perpetuity terminal value calculation. In highly dynamic and competitive environments common today it is sometimes unreasonable to expect cash flows to grow at a constant rate into infinity. As products and businesses mature, decline, and cease to be profitable, this alternative provides a suitable method for mimicking such life cycles.
   
   
8. Why should I use the Comparable Investment Score (CIS)?
   The CIS is a unique feature to benchmark and compare different and competing investment proposals within your business. It provides an excellent tool for prioritizing business proposals and accelerating approval and Decision Making processes.