IRR 3D Plot

For an assignment in Entrepreneurial Finance I decided to build the financial model in Python. For a model of average complexity there is really no good reason to do this, and even for more complex models the network benefits of Excel probably outweigh Excel's weaknesses. But, uh, I did it anyways. A cool byproduct of doing so, however, is that I could easily change the sensitivity analysis.

I decided to create a sensitivity analysis of the IRR with three independent variables. To display the result, I graphed each point and color coded it based on whether it is above (green) or below (red) a certain IRR hurdle rate. But then I thought, "Well, IRR hurdles are pretty arbitrary." So I decided that instead of picking the rate, I would just show multiple IRR hurdles and create a gif showing each. So, here it is:

Sensitivity Analysis

This isn't very useful, although it does show that the future series B investment does not have much of an effect on our IRR (as otherwise we'd see more of a cliff overhang shape). Still, the only reason I'm posting this is because it is kind of cool looking and I didn't get to submit it with the assignment as we had to hand in a paper copy.