3. 6.46 A manufacturer of heavy-tow carbon fibers (used for sporting goods, thermoplastic compounds, windmill blades, etc.) reported the net cash flows shown.

1. Determine the number of possible i* values.

2. (Spreadsheet exercises) Apply Norstrom’s criterion, then write the PW-based ROR relation for trial-and-error determination of the i*

value(s), and finally determine all rate of return values between −50% and 120% using the IRR function with “guess” values entered.Page 192 3. Determine the PW values at different rates of return: −50%, 0%, 120%, plus the i* value(s) determined in part b.
4. What conclusion can you make about the i* values of this cash flow series?
Table Summary: Table divided into 2 columns with the headings marked as: Year and Net Cash Flow in dollars.
Year Net Cash Flow, $
0 −17,000 1 20,000 2 −5,000 3 8,000