3 4 5 $ 250,000 40,000 6 $ 7 $ Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate 30,000 30,000 8 $ 9 10 $ 395,000 11 $ 250,000 12 $ 70,000 13 17 % 1. Reset the discount rate to 17%. Suppose the salvage value is uncertain. How large would the salvage value have to be to rest 7 a positive net present value? Answer is complete but not entirely correct. Minimum salvage value required to generate a positive present value $ 40,000 X