Discount 15% : .870

Chapter 12: 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 128-1 and Exhibit 128-2. (Use appropriate factor(s) from the tables provided) B $ $ A 1 Chapter 12: Applying Excel t 2 3 Data 4 Example E 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 Annual revenues and costs 9 Sales revenues 10 Cost of goods sold 11 Out-of-pocket operating costs 12 Discount rate 13 160,000 80,000 20,000 20.000 $ $ $ 5 $ 300,000 255.000 85.000 15% 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 c. The internal rate of return is between what two whole discount rates (eg, between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%. etc.? The internal rame of return is between % and d. Roset the discount rate to 15%. Suppose the salvage value is uncertain. How large would the savage value have to be to result in a positive net present value? Minimum savage value required to get a portive present value