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fill in the question marks Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the

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Data 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 $60,000 $100,000 $5,000 $10,000 $200,000 $125,000 $35,000 14% Enter a formula into each of the cells marked with a ? below Exhibit 14-8 Years 3 Now 2 4 5 ? ? ? 2 2 ? ? ? ? ? ? ? ? 2 2 2 ? 2 + Purchase of equipment Investment in working capital Sales Cost of goods sold Out-of-pocket operating costs Overhaul of equipment Salvage value of the equipment Working capital released Total cash flows (a) Discount factor (14%) (b) Present value of cash flows (a) (b) Net present value ? ? ? 2 2 2 ? ? ? ? ? ? 2 ? ? ? ? 2

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