An internal rate of return is a single formula. What is less well mastered is the choice of discount rate, the treatment of residual value, and what the payback period conceals when used on its own.
The workshop works on cases built to expose those traps, rather than on examples that come out neatly.
The audience for this half-day is not only the person building a project: it is also the person who has to choose between several, or explain to a committee why the money goes to one rather than another. The three indicators do not answer the same question, and that is the first thing the workshop separates — a project can show a short payback and still destroy value, while another clears the bar only because of the residual value assumption that was chosen.
The calculation workbook used during the session leaves with you, the cases already built into it: you can replay a calculation afterwards and see what a single assumption changes. What we do not do is plug it into your figures. Applying the method to your project means discussing your assumptions one by one, which is advisory work. The distinction is not administrative: in a workshop, nobody around the table has read your accounts.
What you receive
- Half a day in a small group, on worked cases.
- The calculation workbook used during the workshop, to take away.
- A written handout with the formulas and their limits.
Included
- A written answer to questions raised, within 15 days of the session
Not included
- Applying it to your company's figures, which is advisory work
- Any certificate recognised by an accrediting body