Case Study: PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIoT TECHNOLOGY


1. PW at 12% is shown in row 29. Select server #2 (n = 8) with the largest PW value.



2. #1 (n = 3) is eliminated. It has i* < MARR = 12%. Perform an incremental analysis of #1 (n = 4) and #2 (n = 5). Column H shows ?i* = 19.5%. Now perform an incremental comparison of #2 for n = 5 and n = 8. This is not necessary since no extra investment is necessary to expand cash flow by three years. The ?i* is infinity. It is obvious: select #2 (n = 8).



3. PW at 2000% > $0.05. ?i* is infinity, as shown in cell K45, where an error for IRR(K4:K44) is indicated.

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