Simple Financial Model

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Conditional Containers and Cost and Revenue Simulation

Description

This is a very simple financial model for a company. It is not detailed, but shows how GoldSim can be used to model a company. In this case, the company is a mock business which has a five year start-up prior to the start of big project. The model simulates costs and revenues with depreciation, overhead, taxes, and interest on a loan. The output of the model is internal rate of return (IRR), net present value (NPV) and net cash as a function of time. More complex models would represent many of the inputs as probability distributions (they are all constants in this model), and would add sub-models for revenues and costs (these are entered as being constant in time)

 

Additional Information

Keywords

Conditional container, Net Present Value (NPV), Internal Rate of Return (IRR), Cash Flow

Categories

GoldSim Applications, GoldSim Modules, Cost Modeling & Project Planning, Financial Module

Experience Level
Beginner
Contact

GoldSim Technology Group

 

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