Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone please help me with this? The excel sheet has to be filled out and the questions have to be answered. Chapter 12: Applying

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Can someone please help me with this? The excel sheet has to be filled out and the questions have to be answered.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Chapter 12: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo) Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C21 enter the formula - B10". Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Appendix 128. Verify that your worksheet matches the example in the text. Check your worksheet by changing the discount cote to 10%. The net present value should now be between $56,400 and $56,535 depending on the precision of the calculation. If you do not get an answer in this range, find the errors in your worksheet and correct them. If you did not une formules to calculate the Discount Factors, be sure that those values are updated appropriately using the Appendix 128 formulas that are also noted at the bottom of the spreadsheet instead of using the Discount Factor tables. Click here to view Exhibit:128-1 and Exhibit 128.2. to determine the appropriate discount factor(s) using tables, Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2 hes A1 x fx Chapter 12: Applying Excel "C D E F G A B 1 Chapter 12: Applying Excel 2 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 17 18 Now 19 Purchase of equipment 7 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) 2 29 Present value of cash flows (a) (b) 2 30 Net present value 2 31 32 Use the formulas from Appendix 138 33 Present value of $1 = 1/(1+r)^n 36 Present value of an annuity of 51 = (1/)*(1-1/1+ryn) 35 where n is the number of years and is the discount rate 36 32 Years 3 2 4 5 2 ? 2 2 ? ? ? 2 2 ? 2 2 2 ? 2 ? ? 2 ? ? ? ? 2 2 ? 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 128.1 and Exhibit 128-2 (Use appropriate factor(s) from the tables provided.) B 1 Chapter 12: Applying Excel 2 3 Data 4 Example 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years 9 Annual revenues and costs 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate $ $ 160,000 20,000 5,000 40.000 $ $ $ 5 $ 370,000 250,000 85,000 11 % 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.) Port present value c. The internal rate of return is between what two whole discount rates (e.g. between 10% and between 11 and 12%, between 12% and 13%, between 13% and 14%, etc.)? The intem nate of retum in between and d. Reset the discount rate to 11%. Suppose the salvage value is uncertain How large would the salvage value have to be to result in a positive not present value? Minimum salvaged to general pouve present

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Anne Marie Ward, Andrew Thomas

7th edition

77138449, 978-0077132682, 77132688, 978-0077138448

More Books

Students also viewed these Accounting questions

Question

What are the five stages of the benchmarking process? (LO 7)

Answered: 1 week ago

Question

What is Kaizen costing? (LO 5)

Answered: 1 week ago