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.)

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.)?

d. Reset the discount rate to 18%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value?

B 1 2 4 5 6 Chapter 12: Applying Excel 2 3 Data Example E Cost of equipment needed Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years 9 Annual revenues and costs: 10 Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate $ $ $ 370,000 40,000 35,000 40,000 11 405,000 220,000 65,000 12 13 18 %