Charles Enterprises got into the drone manufacturing business at the inception of the technology. Net cash flows (in $ million units) for years 0 through 5 had its ups and downs as shown below. However, a few years ago, Charles started selling 3-D printable, disposable drones that can be printed, assembled, and launched with different types of sensors in remote locations—ships, isolated land areas, etc. The net cash flows for the last 5 years have improved considerably. With the assistance of the “guess” option in the IRR function, perform a thorough analysis of the NCF series using the following questions. (a) Find all i* values between −100% and +100% for the NCF series for years 0 through 5. (b) Find all i* values for the years 0 through 10. (c) Did the i* analysis reflect the two sign change rule predictions with this range of i* for the 5-year period? For the 10-year period? (d ) Plot i* versus PW for years 0–5 and years 0–10 using two scatter charts. Year NCF, $ Year NCF, $ 0 −40 6 −15 1 32 7 0 2 18 8 5 3 10 9 10 4 −10 10 15 5 −8
Charles Enterprises got into the drone manufacturing
business at the inception of the technology. Net
cash flows (in $ million units) for years 0 through
5 had its ups and downs as shown below. However,
a few years ago, Charles started selling 3-D
printable, disposable drones that can be printed,
assembled, and launched with different types of
sensors in remote locations—ships, isolated land
areas, etc. The net cash flows for the last 5 years
have improved considerably. With the assistance
of the “guess” option in the IRR function, perform
a thorough analysis of the NCF series using the
following questions.
(a) Find all i* values between −100% and +100%
for the NCF series for years 0 through 5.
(b) Find all i* values for the years 0 through 10.
(c) Did the i* analysis reflect the two sign change
rule predictions with this range of i* for the
5-year period? For the 10-year period?
(d ) Plot i* versus PW for years 0–5 and years
0–10 using two scatter charts.
Year NCF, $ Year NCF, $
0 −40 6 −15
1 32 7 0
2 18 8 5
3 10 9 10
4 −10 10 15
5 −8
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