Question
Charles Enterprises got into the drone manufacturing business at the inception of the technology. Net cash flows (in % million units) for years 0 through
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 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) Plor i* versus PW for years 0-5 and years 0-10 using two scatter charts. Year NCF, $ 0 -40 1 32 2 18 3 10 4 -10 5 -8 6 -15 7 0 8 5 9 10 10 15
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