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Chapter $12$: Applying Excel

Data

Example E

Cost of equipment needed $$260,000$

Working capital needed $$50,000$

Overhaul of equipment in four years $$25,000$

Salvage value of the equipment in five years $$20,000$

Annual revenues and costs:

Sales revenues $$435,000$

Cost of goods sold $$280,000$

Out$-$of$-$pocket operating costs $$85,000$

Discount rate $10\%$ what is the net present value of the project