2 Chapter 12: Applying Excel (Algo) 15 Part 2 of 2 points The Chapter 12 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 12-8 in the text. Chapter 12: Applying Excel: Exercise (Part 2 of 2) (Algo) 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 12B-1 and Exhibit 12B-2. (Use appropriate factor(s) from the tables provided.) eBook A 1 Chapter 12: Applying Excel B C 2 Print 3 Data 4 Example E 5 Cost of equipment needed $ 350,000 References 6 Working capital needed $ 50,000 7 Overhaul of equipment in four years $ 25,000 8 Salvage value of the equipment in five years $ 40,000 9 Annual revenues and costs: 10 Sales revenues $ 375,000 11 Cost of goods sold $ 220,000 12 Out-of-pocket operating costs $ 60,000 13 Discount rate 12% Mc Graw Hill < Prev 2 of 2 Next > Check my work Chapter 12 Applying Excel 2 Required information Saved Part 2 of 2 a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) 15 points Net present value eBook Help Save & Exit Submit Print c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? References The internal rate of retum is between Mc Graw Hill % and % d. Reset the discount rate to 12%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value Prev of 2 Next > Check my work