IRR in DoD (Internal Rate of Return in a Defense Example)

Table of Contents

Overview

IRR Algorithms

IRR Algorithm Comparison

DCF Program Features

Discounting Equations (Incorporated in the DCF Program)

Data Input Screen

Sample DCF File (Data in Comma Separated Value Disk File and on Preview Screen)

Sample DCF Input (Spreadsheet Format)

Sample DCF Output (Printer or ASCII File)

Sample DCF Output (Using DCF Program Graph Data)

Using IRR Effectively

Fifty Sample Problems

Example

CIM FEA Example

CIM FEA Costs (Using DoD CIM Sample Data)

The next two slides illustrates:

Alternative A Differential (Using a 7 percent Discount Rate)

Alternative B Differential (with Changing Discount Rates)

The next slide illustrates:

Internal Rates of Return (CIM FEA Differential Cash Flows)

Please note the . . .

CIM FEA Deltas (Differential Cash Flows)

The next slide illustrates . . .

CIM FEA Deltas (Discounting Method Comparison)

CIM FEA A Deltas (Continuous Discounting, Logarithmic Vertical Scale)

IRR versus Risk Class

Risk and Return

DoD Sample Conclusion

Invitation

Email: Ray_Martin@AltaVista.net

Home Page: https://members.tripod.com/~Ray_Martin/RMenu.html

Notes:
1. Includes slides presented at the DoD Cost Analysis Symposium, October 1993 
2. Updated, November 1998
3. Updated, February 1999