You will take on the role of a junior consultant working within a team at North Derby Consulting Company. You are expected to produce a written report suitable for presentation to the senior management team of the consulting company, which they will use to present to the senior management of a client company.
To help you with your project your seniors have specified the following requirements:
1. You are required to write a report on "What managers should know about IRR and why".
2. The report should, 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 must also 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 should be in Report form and should be approximately 1,500 words excluding appendices and references.
4. Marks will be specifically allocated to logical presentation.
5. The usual University penalties for plagiarism apply - see the regulation booklet.
A major stipulation is that the report should not be more than 1,500 words excluding appendices and references otherwise the managers will stop reading your report and will probably request that you are not re-engaged by the company in the future!
You need to demonstrate evidence of numeracy, communication and IT skills in the report.