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​​​Portfolio Analysis & Management System

Discounted Cash Flow Analysis

The Definitive Book & Software System for Present Value or Discounted Cash Flow Analysis



PAMS-DCF, Inc.

16401 Wildwood Court

Punta Gorda, FL 33982

   USA


Sales

Telephone: Phil Tirino  (845) 656-1273

FAX:  (845) 215 0003

E-mail: Sales@PAMS-DCF-INC.COM

or 

philtirino@netzero.net



Figure 11.2 Updated Portfolio Dashboard                     106
Figure 11.3 PAMS-DCF© Comprehensive Portfolio Analysis Report                                                                  108

Chapter 12: Day Counter Calendar Tool                     111
A Tool to Compute Elapsed Days

Between 2 Dates                                                               112
Figure 12.1     Day Count Calculator                            113

Appendix :
A Mathematician’s Perspective on the Multiple

Yields Problem in Discounted Cash Flow Analysis     116
Preface                                                                                 116
Appendix A - Descartes Rule of Signs                          130
Appendix B – The Principle of Mathematical

Induction                                                                             134
Appendix C – Mathematics Definitions                       135
Appendix D – Basic Terminology                                   137
Appendix E – Graphs of the NPV Function                  138
Appendix F – Infinite Reinvestment                             140

                                         Glossary


Glossary                                                                              143
                                        Index
Index                                                                                    149

About the Author                                                            153
.

Table Of Contents
Dedication 19
Acknowledgements                                                                   21

Chapter 1:  Introduction                                                          25
Usage of Excel                                                                             26
Mathematics Involved                                                             27

Chapter 2: Basic Concepts and Definitions                        31
Discounted Cash Flow / Present Value Analysis               32
Discounting                                                                                  2

Chapter 3: Discounting, What Is It, and How Is It Done?   35
A Simple Example                                                                      36
Summary of DCF Analysis                                                        39
Advance Arrears                                                                         39

Chapter 4: Rate of Return or Yield                                         41
Financial Calculators & Excel                                                  42
Why PAMS-DCF©                                                                         43
The Multiple Yield Issue                                                          44
Net Positive Initial Inflows Issues                                        45
How Should This Transaction Be Viewed?                           46

Chapter 5: Accounting for Financial Contracts                   55
Cash Accounting                                                                         56
FASB 13 Too Good to Abandon                                                56
Issues and Conclusion                                                               57

Chapter 6: The Excel Worksheet as a Data Base                61.

Contents 3

Chapter 7: Starting PAMS-DCF© - Overview

Of Entire Process The PAMS-DCF© Dashboard                                                                      68
The Importance of Sequence                                               68
Summary of Steps                                                                   69
The Yield Analysis Screen                                                     70


Chapter 8: Working with the PAMS-DCF© Input

Dashboard                                                                                  75
Example 1: Read In An Existing Deal                                  76
Example 2: Set Up A New Deal From Scratch                  76
Practical Approach                                                                   79
Pricing with PAMS-DCF©  - Seeking Yield Targets
           81

Chapter 9: Working with the PAMS-DCF© Yield Analysis

Engine                                                                                           83
Rolling Out the Flows                                                               84
Computing Yields                                                                      84
Figure 9.1 Large Deal Showing Comparative Yield

Dialog After Computing MISFM                                             86
Figure 9.2 Large Deal SSFM - On-screen report.                87
Figure 9.3 Large Deal IRR    - On-screen report.                   88
Figure 9.4 Large Deal SSFM Showing Screen Control

Dialog Box                                                                                   89

Figure 9.5 FASB 13 Annual Compounding MISFM

Zero SF Rate Report                                                                  90
Figure 9.6 FASB 13 MISFM Semi-Annual 

Compounding 3.5% Sinking Fund Rate                                91
Figure 9.7 FASB 13 SSFM With Zero Sinking Fund

Earnings                                                                                       92
Figure 9.8 SFR 3.5 on Large Sinking Fund Average

Balance                                                                                         93
Figure 9.9 FASB 13 IRR Method  Mathematical

PV Solution - Hard Copy Printer Report                              94
Figure 9.10 FASB 13 IRR Method Semi-annual

Compounding  Mathematical PV Solution                            95

Chapter 10: Portfolio Analysis and Set-Up

Considerations                                                                              97
Components of a Portfolio               
                                        98

Chapter 11: Running the Portfolio Dialog

Input Screen                                                                             103

Figure 11.1 Running the Portfolio Dashboard                 104

Contents 2

Contents 1

Table of Contents