For some time now, I’ve been considering adding corporate finance topics to the list of categories on this site. A little more than 20% of my traffic comes from corporate sites looking to calculate CAGR in Excel, of all things. To be sure, I spent less time and effort writing that post than many others and therefore was surprised when it became such a big hit (in all senses of the word).
Today, I went through all my old posts and cleaned up their categorizations. Next week, I’ve decided to start writing some posts and refreshers on tools, calculations, and methods useful to those who work in corporate finance and related areas, together with some less serious posts that may interest the same audience. Sort of an MBA-in-a-box type of thing, since I can relate to starting a new job and having to dig through old class notes to remember how to calculate and apply EVA(r) or other common three-letter finance acronyms to whatever project I was working on.
For me, this is a fairly ambitious project since corporate finance topics are, for the most part, dry and only of interest to people who are in the field. Coming up with interesting and helpful posts will be a definite challenge. Anyone in my target audience who’s reading this, I welcome suggestions!
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AllFinancialMatters » Blog Archive » How to Compute Compound Annual Growth Rate - CAGR
[…] Ricemutt over at Experiments in Finance has written some wonderful posts (here, here, and here) on financial math. It was through her (I think Ricemutt is a “her,” but I’m not positive on that) posts that I discovered the meaning of Compound Annual Growth Rate or CAGR as it is commonly know. Yes, I was aware of CAGR but I never really thought about it much. I didn’t know it at the time that I put my Average vs. Geometric Average post together using an Excel spreadsheet, but CAGR and Geometric Average are the same thing. And, to top it off, I found a formula for calculating them that is MUCH easier than I previously understood. That’s good for all of us! […]
Jae
I have a problem in my finance class where the annual revenues from a project is $500,000 and annual costs are $300,000. The corporate tax rate is 40% and the cost of capital is 12%. How do I calculate NPV of the project