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)

 

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