# Modeling

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EXCEL MODELING AND ESTIMATION IN CORPORATE FINANCE
Third Edition

CRAIG W. HOLDEN
Max Barney Faculty Fellow and Associate Professor Kelley School of Business Indiana University

To Kathryn, Diana, and Jimmy.

Contents iii

CONTENTS

Preface ..................................................................................... vii
Third Edition Changes .................................................................................... vii What Is Unique About This Book ..................................................................... x Conventions Used In This Book .......................................................................xi Craig’s Challenge ........................................................................................... xiii The Excel Modeling and Estimation Series .................................................. xiii Suggestions for Faculty Members ..................................................................xiv Acknowledgements ........................................................................................... xv

PART 1 TIME VALUE OF MONEY ..... 1
Chapter 1 Single Cash Flow ....................................................1
1.1 Present Value ............................................................................................... 1 1.2 Future Value ................................................................................................ 2 Problems .............................................................................................................. 3

Chapter 2 Annuity ...................................................................4
2.1 Present Value…...

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