E. 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 retun is between % and d. Reset the discount rate to 13%. 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 3. Data 4 Example E Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years 8 Salvage vailue of the equipment in five years Annual revenues and costs: 490,000 60,000 60,000 2. 7. 30,000 6. 10 Sales revenues 440,000 230,000 60,000 11 Cost of goods sold Out-of-pocket operating costs 13 Discount rate 13 %