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 14%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value?

Chapter 12: Applying Excel: Exercise (Part 2 of 2) 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 12B-1 and Exhibit 12B-2. (Use appropriate factor(s) from the tables provided.) Bc 1 Chapter 12: Applying Excel $ $ 3 Data 4 Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years 8 Salvage value of the equipment in five years Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket operating costs 13 Discount rate 430,000 60,000 30,000 35,000 $ 10 11 12 $ $ $ 435,000 250,000 60,000 14 %