2 Part 2 of 2 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 128-1 and Exhibit 12B-2. (Use appropriate factor(s) from the tables provided.) A B C 15 1 Chapter 12: Applying Excel points 2 802-4039 3 Data 4 Example E 5 Cost of equipment needed $ 470,000 Book 6 Working capital needed $ 40,000 P 7 Overhaul of equipment in four years $ 50,000 8. Salvage value of the equipment in five years $ 30,000 References 9 Annual revenues and costs 10 Sales revenues $ 435,000 11 Cost of goods sold $ 235,000 12 Out-of-pocket operating costs $ 70,000 13 Discount rate 11 % 20 ces 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.) Net present value 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.)? The internal rate of return is between % and % d. Reset the discount rate to 11%. 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