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Internal Rate of Return for an Investment Fund

Monte Carlo Simulation

Summary

This project involves:

  • Incorporating finance knowledge in building the model (royalty financing)
  • Researching applicability of Monte Carlo in modeling returns
  • Using VBA and macros to streamline processes

Introduction

This project combined my skill in VBA and knowlegde in financial modeling. This was my first time working with a royalty-based capitalist. It was a project that incorporated what I learned in school into a real-life scenario. I used Monte Carlo simulations to look at different payback time windows and see how that would affect the Internal Rate of Return (IRR) in the long run.

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IRR Summary