This week you are invited to experience the highs (and lows) of being a model auditor and embark on a ‘find the errors’ exercise.
Prize: Free access to our new online course FAST Fundamentals and a limited edition F1F9 mug.
The flexibility of excel, responsible in large part for its ubiquity in the world of business can also be a curse. An excel spreadsheets in the wrong hands can be a dangerous thing.
The developer has almost unlimited scope to generate errors which can lead to spectacularly bad decision making. Our horror stories e-book highlights some particularly scary examples.
Research has shown that 90% of all spreadsheets of >150 rows contain errors. [source: Ray Panko, Hawaii University].
The model provided contains 5 errors (that I know about) which materially impact the Net Present Value (NPV) of the project to the extent that it would change the investment decision of any rational investor.
The challenge is simple, locate the 5 errors and fix them.
– Download the template model from here.
– Locate and fix the errors
– Calculate the revised NPV and IRR of the project
– If you are brave enough, post your answer here with an explanation of the source of the errors. Otherwise, you can e-mail me your answer and calculations email@example.com
– We will select the winner using our complex excel-based randomiser
– We’ll also post the answer in a couple of weeks.
If you find the exercise interesting / useful, please like and share to help us spread the word.Try our new online FAST Fundamentals course