Internal Rates of Return(CIM FEA Differential Cash Flows)

• Baseline and B deltas (differentials) agree

• IRRs confirm larger avoidance for A delta

• Risk lowest (IRR largest) for Alternative A

• A Delta compares well with industry

• B Delta below typical industry IRR target

Data source: CIM Functional EA Guidebook, 15 Jan 93, p. C-9, C-11

Copyright © 1991-1997, Ray Martin

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