Intense, real-world, memorable - gamified simulation training
Intense, real-world, memorable - gamified simulation training
The Internal Rate of Return Simulation immerses participants in the high-stakes world of investment decision-making.
Time value of money and discounted cash flow analysis
IRR calculation methodologies and interpretation
NPV-IRR comparison and decision rules
Capital rationing and project selection under constraints
Risk-adjusted return analysis
Reinvestment rate assumptions and Modified IRR
Scenario and sensitivity analysis for cash flow projections
Capital budgeting in corporate and investment contexts
Opportunity cost and hurdle rate determination
Multiple IRR scenarios and their resolution
In the simulation, participants will:
Analyze cash flow projections for multiple investment opportunities
Calculate and interpret IRR for competing projects
Allocate limited capital across investment options
Adjust hurdle rates based on changing risk assessments
Perform scenario analysis on cash flow projections
Present investment recommendations to stakeholders
Re-evaluate decisions based on changing market conditions
Balance short-term returns against long-term strategic goals
Calculate and interpret IRR for various investment scenarios
Apply capital budgeting techniques to real-world decisions
Recognize the strengths and limitations of IRR as a metric
Integrate risk assessment into investment decision-making
Allocate capital efficiently under constraints
Communicate investment recommendations effectively
Use sensitivity analysis to test decision robustness
Understand how corporate strategy influences hurdle rates
Compare IRR with NPV and other investment metrics
Make informed investment decisions under time pressure
1. Receive Investment Brief Participants review project proposals, cash flow projections, and capital constraints
** 2. Analyze Opportunities** Calculate IRR, NPV, and other metrics for each potential investment
3. Make Allocation Decisions Select projects that maximize returns within capital limits
4. Collaborate Across Roles Teams may represent different stakeholders with competing priorities
5. Present Recommendations Defend investment choices through memos or presentations
6. Review Outcomes Receive feedback on returns achieved and strategic alignment
Who is the IRR simulation designed for? This simulation is ideal for finance students, aspiring investment analysts, corporate finance professionals, and anyone seeking to master capital budgeting decisions in a realistic environment.
What prior knowledge is required? Participants should understand basic time value of money concepts, but the simulation includes instructional content for all levels, from beginners to those with financial experience.
How long does the simulation take to complete? The standard format runs 2-4 hours, but can be delivered in shorter modules or extended formats depending on learning objectives.
Is this individual or team-based? The simulation supports both formats, with team play emphasizing collaboration and negotiation skills alongside technical analysis.
What industries/scenarios are covered? Participants analyze projects across sectors including technology, infrastructure, manufacturing, and energy, with cash flow patterns reflecting industry-specific characteristics.
Can instructors customize the simulation? Absolutely. Project parameters, capital constraints, market conditions, and evaluation criteria can be tailored to specific course objectives.
How is performance measured? Assessment considers IRR accuracy, capital allocation efficiency, risk-adjusted returns, and the quality of investment justifications.
What careers does this prepare participants for? The simulation develops skills relevant to investment banking, private equity, corporate finance, project management, and any role involving capital allocation decisions.
Accuracy of IRR calculations and interpretations
Quality of capital allocation decisions under constraints
Application of risk-adjusted return methodologies
Effectiveness of investment recommendations and justifications
Adaptability to changing market conditions and new information
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.
