YDM Limited

Inputs
New drug to be introduced in the year 2014
Entry of first competitor 2017
Entry of second competitor 2022
Number of project years 10
Investment in newplant (400,000)
Per unit cash flow 10
Reduction in market share on 1st comp entry 30.00%
Reduction in market share on 2nd comp entry 15.00%
Growth rate of the market 10.00%
Initial demand 10,000
WACC 15.00%
Work area
Market demand Envisaged
Market taken away by first competitor
Market taken away by second competitor
Demand fo YDC Ltd.
Cash inflows (400,000)
Net present values @15%
IRR
10,000
11,000
12,100
13,400
14,800
16,300
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Market demand Envisaged
2014
Market demand Envisaged 10,000
It is a very simple trick. Use OFFSET function to choose the graph that you want.
First prepare the drop down box. The drop down box creates a link number which is used to create the numbers required for the graph.
Here we go!!
Choose the graph that you want -->
2,014
Market demand Envisaged 10,000
The above chart is a one-chart model. See below for dynamic charts (all in one place)
2,000
4,000
2014 2015 2016 2017 2018 2019
10
5
10
15
20
25
2,014 2,015
T
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Details of Data Validation to the right
This is a input variable
This is also a input variable. The IF functions in work area will take care of all acceptable
entries in these two cells. Try it out!!
Output
159,443
24.39%
1 2 3 4 5 6 7
2014 2015 2016 2017 2018 2019 2020
10,000 11,000 12,100 13,310 14,641 16,105 17,716
0 0 0 (3,993) (4,392) (4,832) (5,315)
0 0 0 0 0 0 0
10,000 11,000 12,100 9,317 10,249 11,274 12,401
100,000 110,000 121,000 93,170 102,490 112,740 124,010
159,443
24.39%
MANAGEMENT SUMMARY
Net Present Value at 15%
Internal Rate of Return
2015 2016 2017 2018 2019
11,000 12,100 13,400 14,800 16,300
It is a very simple trick. Use OFFSET function to choose the graph that you want.
First prepare the drop down box. The drop down box creates a link number which is used to create the numbers required for the graph.
Link number here in yellow cell, used in OFFSET function
1
2,015 2,016 2,017 2,018 2,019 2,020 2,021
11,000 12,100 13,310 14,641 16,105 17,716 19,487
The above chart is a one-chart model. See below for dynamic charts (all in one place)
11
12
13
15
16
18
19
21
24
2,014 2,015 2,016 2,017 2,018 2,019 2,020 2,021 2,022 2,023
Demand fo YDC Ltd.
C4 This validates the current year, whenever the model is used
C5 This validates for year of entry of 1st competitor after the first year of production and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter in 2014 and neither after 2024)
C6 This validates for year of entry of 2nd competitor after the entry of 1st competitor and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter until 2020 and neither after 2024) (this has an alert)
C7 Restricts any number from 1 to 20 (this model will accept any number of years from 1 to 20)
C9 Restricts entry in negative values
C10 Restricts entry in positive values
C12 Restricts entry between '0' and '1'
C13 Restricts entry between '0' and '1'
C14 Restricts entry between '0' and '1' (arguable - one can say that growth rate can be more than 100% also - discretionary)
C15 Restricts entry in positive values
C16 Pegs max. WACC at 25% and minimum at 0%
8 9 10 11 12 13 14
2021 2022 2023 0 0 0 0
19,487 21,436 23,579 0 0 0 0
(5,846) (6,431) (7,074) 0 0 0 0
0 (3,215) (3,537) 0 0 0 0
13,641 11,790 12,969 0 0 0 0
136,410 117,900 129,690 0 0 0 0
2,022 2,023
21,436 23,579
This validates the current year, whenever the model is used
This validates for year of entry of 1st competitor after the first year of production and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter in 2014 and neither after 2024)
This validates for year of entry of 2nd competitor after the entry of 1st competitor and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter until 2020 and neither after 2024) (this has an alert)
Restricts any number from 1 to 20 (this model will accept any number of years from 1 to 20)
Restricts entry between '0' and '1' (arguable - one can say that growth rate can be more than 100% also - discretionary)
15 16 17 18 19 20
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
This validates for year of entry of 1st competitor after the first year of production and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter in 2014 and neither after 2024)
This validates for year of entry of 2nd competitor after the entry of 1st competitor and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter until 2020 and neither after 2024) (this has an alert)
This validates for year of entry of 1st competitor after the first year of production and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter in 2014 and neither after 2024)
This validates for year of entry of 2nd competitor after the entry of 1st competitor and also ensures that he cannot enter after the project period is over (in other words, second competitor cannot enter until 2020 and neither after 2024) (this has an alert)
Functions used in the Model
None in Inputs area
None in Output area
In work area
IF
ROUND
NPV
IRR
TEXT function in F13
Nothing else
Functionalities used
Borders
Formats
Simple Chart and Dynamic Charts - various chart functionalities
Conditional Formatting in I13 and I14 (display of results)
Data Validation of inputs