Plot future worth as function of MARR

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Reference no: EM132003784

Julian Stewart invested $280,000 in a limited partnership to drill for natural gas. The investment yielded annual returns of $45,000 the 1st year, followed by $10,000 increases until the 6th year, at which time an additional $180,000 had to be invested for deeper drilling. Following the 2nd drilling, the annual returns decreased by $10,000 per year, from $85,000 to $5,000. Using Excel, the IRR = 15.28%.

a) Plot future worth as a function of MARR

b) Plot future worth as a function of MARR (MARR ranges from -50% to +50% increment by 5%)

c) Determine the MARR that maximizes FW

Use only Excel to solve and show your work in Excel. Answer each part of the question, else it will be marked incomplete.

Reference no: EM132003784

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