A o 3 4 $ 16 7 Data Example 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 $310.000 $30,000 $35,000 $20,000 9 5300,000 $245,000 365,000 5 into each of the cele marked with a Enter a forma EX 13- below Purchase of equipment Investment in working capital Sales Cost of goods sold Out-of-pocket operating costs Overhead of equipment Salvage value of the equipment Working capital released Total cash flow (a) Discount factor (14%) (b) Present value of cash flow (a) (b) Net procent value 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 ratese.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 d. Reset the discount rate to 10%. 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 procent value