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Chapter 14: Applying Excel: Exercise (Part 2 of 2) (Algo) 2. The company is considering a project involving the purchase of new equipment Change the

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Chapter 14: Applying Excel: Exercise (Part 2 of 2) (Algo) 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 148.1 and Exhibit 14B-2. (Use appropriate factor(s) from the tables provided.) B $ $ 1 Chapter 14: 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 250,000 55,000 30,000 20.000 $ $ $ s 390,000 270.000 50.000 12 % s 2. 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 peasant value NL Juli 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 (e.g. between 10% and 11%, between 1 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 12%. Suppose the salvage value is uncertain. How large would the savage vue et de la rutina positive net present value? Minimum salvage value required to generate a positive present value

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