1 Unit 4 Application Assignment 2 Chapter 13: Applying Excel 4 Data 5 Example E 6 Cost of equipment needed 7 Working capital needed 8 Overhaul of equipment in four years 9. Salvage value of the equipment in five years 10 Annual revenues and costs: 11 Sales revenues 12 Cost of goods sold 13 Out of packel operating costs 14 Discount rate $60,000 $100.000 $5,000 $10,000 $200,000 $125.000 $35,000 14% Enter a formula into each of the cells marked with a ? below. Be sure to format the cells appropriatey. For 16 example, if the cell has a dollar amount in it, then the cell should be formatted for dollars. Exhibit 13.6 20 Purchase of equipment 21 Investment in working capital 22 Sales 23 Cost of goods sold 24 Out-of pocket operating costs 25 Overhaul of equipment 26 Sahrage value of the equipment 27 Working capital released 28 Total cash flows (a) 29 Discount factor (14%) (b) 30 Present value of cash flows (a) (b) 31 Net present value 32 33. Use the formulas from Appendix 138 34 Present value of $1 = 1/(1+r'n 35 Present value of an annuity of $1 = (1/1)(1(1/1.ryn)) 26 where n is the number of years and r is the discount rate Chapter 13 Form O