Assignment Title: What Managers Should Know About Internal Rate of Return (IRR) and Why?

DETAILED TASKS:

You will take on the role of a junior consultant working in a team at North Derby Consulting Company. You are likely to produce a written report appropriate for presentation to the senior management team of the consulting company, which they will employ to present to the senior management of a client company.

To help you with your project your seniors have specified the given requirements:

1) You are needed to prepare a report on “What managers should know regarding IRR and why”.

2) The report must, amongst others, critically discuss the decision criteria in applying the IRR for investment appraisal purposes, IRR as a sensitivity analysis tool, especially for brainstorming at senior management meetings and the practical problems with the application of IRR for investment appraisal purposes. You should as well compare IRR with other investment appraisal methods in terms of decision criterion, complexity of application, time value of money and risks appraisal.

3) The work must be in Report form and should be around 1,500 words excluding appendices and references.

4) Marks will be specifically assigned to the logical presentation.

The major stipulation is that the report must not be more than 1,500 words excluding appendices and references or else the managers will stop reading your report and will probably request that you are not re-engaged by the company in the future! Financial Strategy 6AG025

Recommendations:

You are to end the report with conclusions and recommendations (with reasons) mainly based on your piece of research. Alternatives causes of action must be fully assessed.