In “Beyond the FAST Standard: adventures in enterprise reporting and analysis”, Kevin and Andrew will explore with you what it is like to break the rules but retain the spirit and the philosophy of a modelling standard.
Author: Stephen Daniels
I would prefer to use the XIRR function since it matches cashflows with actual dates
This week we move on to the twin brother of NPV – The Internal Rate of Return or IRR.
I was surprised at the variation in the results submitted. It highlighted to me the scope for misinterpretation and error in the calculation of something as apparently simple as an NPV.
Net present Value (NPV) is a key metric used by investors to calculate the attractiveness of a potential investment.
It’s good to get the model ‘out there’ so decision makers can see what is really going on and not just the headlines.
Here are some signs that a model ‘smells’, that should be obvious within a minute of opening.
A flexible financial model will be able to evolve to meet the changing requirements of business rather than dying as its environment changes.
This year we are planning to significantly grow our Associate Programme. So, who fits the mould?