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answer in same form please answers only 2. The company is considering a project involving the purchase of new equipment Change the data area of
answer in same form please answers only
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 14B-1 and Exhibit 14B-2 (Use appropriate factor(s) from the tables provided.) A 1 Chapter 14: Applying Excel 2 3 4 S 5 $ 6 430,000 55,000 30.000 20.000 7 $ $ 8 Data Example E 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 9 10 $ $ s 415.000 235,000 55,000 149 11 12 13 Required information 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 fe.g. between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? % and The internal rate of return is between 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? Minimum salvage value required to generate a positive present value 7 of 7 8 Next > Step by Step Solution
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