Event

S4 Model Test

Overview

We challenged ourselves to develop the "S4 model" - simple, small, structured, and smart. And on 14 Jan 2009 you can help us test the S4 in public with your (anonymous) project assumptions.

The S4 Model is not a new or original idea. It is oft-discussed as a theoretical concept and some folks have tested out their 'rough and ready' shadow models against the 'heavy models' that inevitably drive transactions. In fact, when these shadow models agree with the heavy models, modelers sleep better. And when they don't, we have more confidence in the 'small, simply guy'.

So, the admission price for our next office event is to show up with parameters for a cash flow financed project. If you are interested, we will send you 'the sheet'. These are the (very few) independent variables we need. We will pump these into the S4 Model (on the night) and produce an equity IRR on net shareholder cash flow for the defined base case. We will then all see how close this is to the 'real' one.

If we get close, you get free beers and a copy of the S4. If we fail, you get free beers, a copy of the S4, and perhaps some follow-up time from us figuring out where S4 MK I went wrong. Don't forget, it was the MK V Spitfire that won the Battle of Britain (and the aircraft got better from there).