project-investment-analysis

Compute NPV, IRR, MIRR, synergy, and control value for projects and acquisitions.

Updated Sep 9, 2026
One-click install
npx skills add https://github.com/lyndonkl/hermesworld --skill project-investment-analysis-lyndonkl
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: project-investment-analysis
Source: https://github.com/lyndonkl/hermesworld/tree/main/packages/capital-structure-analyst/skills/corporate-finance/project-investment-analysis
Command: npx skills add https://github.com/lyndonkl/hermesworld --skill project-investment-analysis-lyndonkl

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes scripts (resource) and references (resource) components.

What problem does it solve? Capital budgeting and acquisition decisions require disciplined arithmetic on incremental cash flows, and common tools hide failure modes like multiple IRRs, unequal project lives, and double-counted synergy. This Skill runs the full decision-rule set through a tested Python engine and reports every root, ranking conflict, and gain split explicitly. ## Core Features & Use Cases - Project decision rules: Compute NPV per stream at its own rate, IRR with every root reported and reliability flags, MIRR with the reinvestment illusion quantified, payback, profitability index, and capital-rationing selection with exhaustive budget search. - Comparability repairs: Compare mutually exclusive projects of unequal lives via equivalent annuities and replication, and strip total cash flows down to the incremental stream by removing sunk costs and allocated overhead. - Acquisition analysis: Value synergy by cash flow or combined-firm routes with a sum-of-parts check, apply post-merger realization haircuts, compute the value of control and control premiums, and run the four-number acid test that refuses deals valued at the wrong discount rate. - Use Case: Given a target's stand-alone value, restructured value, synergy estimate, and proposed price, run the deal subcommand to get the ceiling price, the verdict by motive, and how the gains split between buyer and seller. ## Quick Start Ask the agent to evaluate a project's cash flow stream by running the project.py npv subcommand with your cash flows and discount rate as JSON.

Frequently Asked Questions about project-investment-analysis

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate NPV and IRR for a project in Python?

Pipe a JSON payload with cash_flows (year 0 first, undiscounted) and discount_rate to the npv or irr subcommand of project.py. The engine returns present values per year, total NPV, every IRR root found, and an accept/reject decision when a hurdle rate is given.

How to value synergy and set a maximum acquisition price?

Use the synergy subcommand with either a synergy cash flow schedule discounted at the receiving business's rate, or combined-firm values with a sum-of-parts check. The deal subcommand then computes the ceiling price as stand-alone value plus synergy and shows who keeps the gains.

Why does IRR return null with a list of roots?

A cash flow stream that changes sign more than once can have multiple internal rates of return, so no single rate is the project's return. The engine reports all roots and marks the result unreliable; decide on NPV at the actual cost of capital instead.

How do I compare projects with different lives?

Use the different-lives subcommand, which reports equivalent annuities and replicated NPVs over the common multiple of the lives. Raw NPV comparison is misleading because longer projects accumulate more value and tie up capital longer.

Does project.py require any Python packages to install?

No, the engine uses only the Python standard library and runs anywhere Python 3 is available. Every subcommand accepts JSON on stdin or via --in FILE, and --example prints a sample payload.

When should I use MIRR instead of IRR?

Use MIRR when comparing projects whose cash flow timing differs at equal scale, since IRR assumes intermediate flows reinvest at the IRR itself. MIRR compounds inflows at an explicit reinvestment rate, and the gap between the two rates measures the reinvestment illusion.