Hardcoded output vs linked model
Does the model still work when revenue changes? Synthetic packet: revenue 1,000, COGS 600, opex 250, depreciation 40, interest 20, tax 25%, capex 60, working capital +30 (USD m).
MO
4/4 checks| Revenue | input | 900.0 |
| Cost of goods sold | input | 540.0 |
| Cash operating expenses | input | 250.0 |
| Depreciation | input | 40.0 |
| Interest expense | input | 20.0 |
| Tax rate | input | 25% |
| Capital expenditure | input | 60.0 |
| Increase in working capital | input | 30.0 |
| EBIT | =revenue-cogs-opex-dep | 70.0 |
| NOPAT | =ebit*(1-tax) | 52.5 |
| FCFF | =nopat+dep-capex-dwc | 2.5 |
- Pass · Initial FCFF equals the source packet2.5
- Pass · Working capital +20 flows through to FCFF-17.5
- Pass · Interest expense does not change unlevered FCFF2.5
- Pass · Revenue −10% with variable COGS updates FCFF-24.5
Candidate B
0/4 checks| Revenue | input | 900.0 |
| Cost of goods sold | input | 540.0 |
| Cash operating expenses | input | 250.0 |
| Depreciation | input | 40.0 |
| Interest expense | input | 20.0 |
| Tax rate | input | 25% |
| Capital expenditure | input | 60.0 |
| Increase in working capital | input | 30.0 |
| EBIT | =revenue-cogs-opex-dep | 70.0 |
| NOPAT | =ebit*(1-tax) | 52.5 |
| FCFF | typed value | 32.5 |
- Fail · Initial FCFF equals the source packet32.5 vs 2.5
- Fail · Working capital +20 flows through to FCFF32.5 vs -17.5
- Fail · Interest expense does not change unlevered FCFF32.5 vs 2.5
- Fail · Revenue −10% with variable COGS updates FCFF32.5 vs -24.5
A typed-in result matches the answer key today and silently goes stale the moment an assumption changes.