Quick IRR Model: 1. Introduction
FinRobot is an automatic assembler of financial Models in Microsoft Excel. It allows you to set online parameters for your project and download a financial Model with working formulae and input fields in Microsoft Excel.
When ordering your Model online, sensitive financial data about your business does not need to be inputted, if you prefer not to. Your Model will be delivered with dummy financial data, which can be replaced with your own inputs off-line as needed.
Your Model can be further modified off-line. Unlike the black box solutions, the code and type of formulae are intentionally simple and transparent.
Currently, FinRobot provides five versions of the Model called 'Base Model', 'Case Builder Model', ‘TopLine Model’, ‘Quick IRR Model’ and ‘Quick RE Development Model’. This Manual describes the functionality of the Quick IRR Model. To read more about our other Models please refer to their respective manuals (available on-line and as a download in pdf).
An initial understanding of the Model’s layout and templates can be achieved by viewing screenshots of the Model from the Models’ section of our site. Note that yellow fields are data input fields which can be re-populated with data off-line without any risk of unintentionally altering the functionality or structure of the Model. Please ensure you make a back-up after downloading the Model.
Our Models have been successfully tested for Microsoft Office Excel 2007-2010. If your installation of Microsoft Office is different, you may wish to use free Microsoft Office converters. However, we do not guarantee that the Model will retain all of its functionality and graphical representations if opened in a different version of Microsoft Office. We recently tested our Models for Excel 2013 and found no immediate compatibility issues.
Please note that the Quick IRR Model has xlsm file extension allowing use of macro VBA code. However, there is no macro present in the file. If you disable use of macro in your Excel settings the file will work properly.
Quick IRR Model allows users to perform back-of-the-envelope IRR calculation for a new project. By entering few parameters on-line you can get an idea of cumulative funding required, cash flow profile and expected returns for your new idea. It is free.
To gain access to more functionality you can purchase the underlying Excel Model for a modest fee as advertised in our Tools’ section of the website.
Our Quick IRR Model allows you to -
- Choose your own calendar start and stop dates for the project (monthly, quarterly or annually)
- Assume time and investments required pre-launch as well as the launch costs
- Drive business’s revenue by assuming customer acquisition / retention variables and average revenue per customer
- Calculate margins and venture’s cash profile over time by assuming direct margins and overhead costs (full version has three classes of overheads whilst free version has one)
- Introduce exit (sale) value assumptions to yield IRR on going concern basis
- Perform IRR, required funding, break-even and payback calculations
- Differentiate investment terms and returns for founders vs. financial investors (paid version only)
- Compare pre- and post- tax cash flows and returns (paid version only)
- Differentiate inflation factors for individual revenue and cost items
Additional inputs can be set in the purchased version of the Model in Excel. For details please read more below.