ANSWER THIS in fomula view!!!! DONT NEED the numbers for the answers. NEED the excel formula

Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Appendix 13B.

Verify that your worksheet matches the example in the text.

ANSWER THIS in fomula view!!!! DONT NEED the numbers for the answers. NEED the excel formula

Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56,400 and $56,535--depending on the precision of the calculations. If you do not get an answer in this range, find the errors in your worksheet and correct them.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

ANSWER THIS in fomula view!!!! DONT NEED the numbers for the answers. NEED the excel formula

A1 X fx Chapter 12: Applying Excel 1 Chapter 12: Applying Excel 3 Data 4 Example E 5 Cost of equipment needed $60,000 6 Working capital needed $100,000 7 Overhaul of equipment in four years $5,000 8 Salvage value of the equipment in five years $10,000 9 Annual revenues and costs: 10 Sales revenues $200,000 11 Cost of goods sold $125,000 12 Out-of-pocket operating costs $35,000 13 Discount rate 14% 14 15 Enter a formula into each of the cells marked with a ? below 16 Exhibit 12-8 Years 3 ? ? Now 19 Purchase of equipment 20 Investment in working capital 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Overhaul of equipment 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) 28 Discount factor (14%) (b) 29 Present value of cash flows (a) (b) 30 Net present value 31 32 *Use the formulas from Appendix 13B: 33 Present value of $1 = 1/(1+r)^n 34 Present value of an annuity of $1 = (1/r)*(1-(1/(1+r)n)) 35 where n is the number of years and r is the discount rate ? ? ? ? ? ? ? ? ? ? ? ? ? 39