Investment Analysis Template

🟩 1️⃣ BASIC VERSION

A clean, functional Investment Analysis spreadsheet in English — designed for clarity, structure, and immediate insight into return, payback, and project value.

Investment Analysis (Basic)

Core Features:

🔹 ROI calculation
- Shows the relative return of the project based on total after-tax inflows vs. initial investment.
🔹 Simple Payback Period
- Quick estimate of the number of years required to recover the initial investment using Year 1 net cashflow.
🔹 NPV calculation (Discounted Cashflow)
- Applies your chosen discount rate to future cashflows to determine present value and value creation.
🔹 Clean, structured input fields
- Clear fields for investment, cashflow, growth rate, tax rate, years, and discount rate.
🔹 Simple Year 0 → Year N cashflow logic
- Ideal for users who want quick, dependable investment viability checks.
🔹 Instructions tab included
- Explains each input and metric in a simple, compact way.

👉 Purpose:

A solid foundation for evaluating whether an investment is financially attractive.
Perfect for entrepreneurs, analysts, or managers who want a no-nonsense ROI / NPV / Payback baseline.
No charts, no sensitivities — just a clean, reliable financial core you can build on.

🟨 2️⃣ ADVANCED VERSION

A more analytical, decision-ready investment model — adding depreciation, tax logic, cumulative discounted values, scenario selection, and core sensitivity analysis.

Added Features Compared to Basic:

🔹 Cash Flow Timeline (Year 0–N)
- Opening book value
- Depreciation
- Tax-adjusted profit
- After-tax cashflow
- Discount factor
- Discounted cashflow
- Cumulative CF and cumulative DCF
🔹 Straight-Line Depreciation
- Automatically depreciates the investment across selected years and adjusts profitability and taxation.
🔹 Full Tax Logic
- Tax applied only to positive profit after depreciation, keeping results realistic and compliant.
🔹 Terminal Value Support
- Allows adding a sale value or residual value in the final year.
🔹 Scenario Selector (Base / Optimistic / Pessimistic)
- Adjusts annual cash inflow automatically using multipliers from the Inputs sheet.
🔹 Dynamic Payback Period
- More accurate break-even by using cumulative inflows + fractional calculation.
🔹 Discounted Payback Period
- A present-value version of payback using discounted cashflows.
🔹 Internal Rate of Return (IRR)
- Automatically calculated using all cashflows including Year 0.
🔹 Sensitivity Tables
- ROI vs. ±20% changes in investment
- NPV vs. ±2% changes in discount rate
🔹 Summary Dashboard
- One-sheet overview of:
ROI
NPV
IRR
Simple Payback
Dynamic Payback
Discounted Payback
IRR vs Target IRR
GO / CAUTION / NO-GO traffic light indicator
🔹 Updated Instructions
- Clear documentation of all Advanced tools and calculations.

👉 Purpose:

A more intelligent, structured upgrade for users who want depreciation logic, tax correctness, scenario selection, and early analytical insight without yet entering Expert-level forecasting or risk modeling.

🟥 3️⃣ EXPERT VERSION

A full investment cockpit — transforming the workbook into a professional-grade capital budgeting, scenario modeling, multi-project comparison and risk-analysis system.

Includes everything from Basic + Advanced, plus:

🔹 Multi-Step Growth Model (3 Phases)
- Early-stage growth
- Mid-phase expansion
- Long-term stable growth
- Automatically applied to inflow calculations for realistic multi-year project modeling.
🔹 Flexible Depreciation Methods (SL / Declining Balance)
- Choose between Straight-Line or Declining Balance
- DB accelerates depreciation for more aggressive tax reduction
- Fully integrated into tax and cashflow logic
🔹 Cashflow Forecast Graph
- A dynamic chart on the Cash_Flow sheet displaying:
- After-tax cashflows
- Discounted cashflows
- Makes trend patterns and break-even points immediately visible.
🔹 NPV Profile Curve (0%–18%)
- NPV at discount rates from 0% to 18% in 2% increments
- Automatic chart showing sensitivity of NPV to cost of capital
- Essential for understanding interest-rate exposure.
🔹 Multi-Investment Comparison Matrix (A/B/C)
- Compare up to three investment proposals side-by-side:
Initial Investment
Inflow
Years
Discount Rate
Terminal Value
Approximate NPV
Simple Payback
Perfect for decision committees and proposal ranking.
🔹 Scenario Simulator (Probabilistic)
- Combines per-scenario NPV/IRR with probability weights for:
Expected NPV
Expected IRR
Useful for uncertainty analysis and risk-adjusted valuation.
🔹 IRR vs Target IRR Comparison
- Automatically shows how far the project IRR is above or below the required return (hurdle rate).
🔹 KPI Benchmarking Dashboard
- Tests user-defined thresholds for:
Minimum NPV
Minimum IRR
Maximum Payback
Shows PASS/FAIL per KPI.
🔹 Investment Risk Dashboard (Grade A–C)
- Outputs a simple, intuitive risk grade based on KPI performance:
A = Meets all thresholds
B = Fails one KPI
C = Fails multiple thresholds
🔹 Tornado Sensitivity Structure
- A structured table for Low/High NPV per factor:
Investment
Inflow
Growth
Discount Rate
Tax
Terminal Value
- Includes automatically calculated impact ranges for quick tornado chart creation — ideal for sensitivity ranking.

👉 Purpose:

A top-tier capital budgeting system for founders, CFOs, analysts, and decision-makers who need forecasting, multi-scenario thinking, investment comparison, sensitivity testing, and risk evaluation — all inside one modular Excel tool.

Perfect for strategic investment planning and board-ready financial analysis.