Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7 6 points Required Information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit
7 6 points Required Information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in the text. eBook 2. The company is considering a project involving the purchase of new equipment Change the data ares of your worksheet to match the following: Use Exhibit 14B-1 and Exhibit 148-2 (Use appropriate factor(s) from the tables provided.) B References S 1 Chapter 14: Applying Excel 2. 2 3 Data Example 5 5 Cost of equipment needed 6 Working capital nended Overhaul of equipment in four years 7 Salvage value of the equipment in five years Annual revenues and costs: 9 9 Sales revenues 10 Cost of goods sold 11 Out of pocket operating costs 12 Discount rate 13 S S 220,000 35,000 15,000 20,000 S S S S S 385,000 235.000 70,000 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 1296 and 13%, between 13% and 14%, etc.)? The internal rate of return is between and % d. Reset the discount rate to 119. 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started