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Can someone help explain this questiom and the steps needed too please, thank you!! 2. The company is considering a project involving the purchase of
Can someone help explain this questiom and the steps needed too please, thank you!!
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 138.1 and Exhibit 13B-2 (Use appropriate factor(s) from the tables provided.) Chapter 13: Applying Excel 3 Data 4 5 6 7 8 9 10 11 280,000 35 000 35,000 30 000 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 405,000 230 000 90,000 12 13 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 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 dollor.) Nel present value 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.)? The internal rate of return is between and % d. Reset the discount rate to 15%. 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 Step by Step Solution
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