Microsoft Excel World Championship starts already on October 6th!
Microsoft Excel World Championship starts already on October 6th!
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Stage 2 (2023) “Fun with Flags”


In financial modeling, a “flag” or “mask” is a technique that is used to track specific events or conditions, particularly in terms of timing. It involves a binary indicator that takes a value of either 1 or 0 (or TRUE or FALSE) to show whether a particular event or condition has happened or not. This indicator can be used in subsequent calculations to enable or disable certain features.
The case presented aims to test the participant’s comprehension of flags using an example project that has a financial close date, a construction period, and an operating period.

Part 1 – You need to use flags to determine the timing and conditions for cash flows, revenue calculations, tax accruals, and payment. He also needs to consider the escalation of selling prices and the exclusion of theoretical volume outside the operations period.

Part 2 – You face additional complexity with non-sequential and inconsistent period dates, overlapping periods, and changes in the sales volume, price escalation rate, and tax calculation. You also need to incorporate dividend payments based on profit thresholds. The challenge is to accurately apply flags and handle the variations in assumptions and timeline to perform the necessary calculations.

This is an actual case study that was presented to the participants of the Financial Modeling World Cup 2023, Stage 2 (March 10-13).

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions
Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold