1. Corporate
finance
Gol team
LOGO
Presented by : Hatem Ali CPM

2. Contents
Finance and Source of finance
financial statement
Net present value (NPV)
Internal rate of return
Pay back
workshop
Company Logo

3. Finance
 The science that describes the management,
creation and study of money, banking, credit,
investments, assets and liabilities. Finance
consists of financial systems.
 which Some prefer to divide finance into three
distinct categories: public finance, corporate
finance and personal finance.
Company Logo

4. Source of finance

5. Financial statement
 Income statement.
 that measures a company's financial performance over a
specific accounting period
 Balance sheets.
 that summarizes a company's assets, liabilities
and shareholders' equity at a specific point in time.
 Cash flow statement.
 which shows the amount of cash generated and used by a
company in a given period.
 Cash inflows usually arise from one of three activities -
financing, operations or investing
Company Logo

6. How to start financial plan
Financial plan
Cost Expected return
(initial investment) 5 years of expected return .
Operation cost
Rent
Wage
Any expenses

7. Financial plan
 Net present value (NPV):
 the sum of present value of all expected incremental cash
flow.
 Internal rate of return (IRR):
 The discount rate that’s makes the following relationship
hold:
PV (inflow)= PV (outflow)
 Pay back period:
 the number of years it takes to recover the initial cost of
investment.

8. Example
Pro1 Y0 Y1 Y2 Y3 Y4 Y5
Investment -50
Cash in 10 15 20 25 30
Net cash flow -50 10 15 20 25 30
Pro2 Y0 Y1 Y2 Y3 Y4 Y5
Investment -200
Cash in 20 30 50 70 100
Net cash flow -200 20 30 50 70 100
Pro3 Y0 Y1 Y2 Y3 Y4 Y5
Investment -15
Cash in 3 10 15 20 25
Net cash flow -15 3 10 15 20 25

9. Example
project 1 2 3
Cost 50,000 200,000 15,000
NPV 57,428 148,742 40,097
IRR 23% 9% 60%
PBP 3.8 5 2.6

10. Questions

11. Contact
Hatem Ali
Mobile: 01225568356
e-mail: hatem_aly87@hotmail.com

12. THANK YOU!