Cells with "?" need excel formulas.

bo AutoSave OFF A SVJD = Chapter_13_Applying_Exce Home Insert Draw Page Layout Formulas Data Review View A v = = = der E Arial 10 v A^ A BI U v Ev av A x fx alten Wrap Text v Merge & Center Paste E | 172 1 Chapter 13: 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 13-8 Years 18 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 Chapter 13 Applying Excel (A) O Saved Part 2 of 2 Required information The Chapter 13 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 13-8 in the text. points 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 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) eBook A 1 Chapter 13: Applying Excel 2 Print 3 Reference $ 290,000 $ 30,000 $ 25,000 $ 40,000 Data Example E Cost of equipment needed Working capital needed 6 Overhaul of equipment in four years 7 Salvage value of the equipment in five | 8 years Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate 13 $ 420,000 $ 265,000 $ 75,000 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 $ 236,090 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 13%. 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