If you could please include the Excel file for this and send it to me to study that would be perfect.

Instructions:

Enter formulas in the cells that contain question marks. For example, in cell D19 enter the formula "= B5".

Note: The present value factors could be computed using the built-in Excel function PV, or the formulas in Appendix 13B.

Verify that your worksheet matches Example E and Exhibit 13-7 in the text.

Please do 6 spreadsheet tabs in addition to the assignment answers.

Once you have verified that your worksheet matches the text, return to the textbook and complete the requirements #1 and #2 a, b, c, & d

1. Requirement 1 Excel spreadsheet, TYPO in the older textbooks - the question should say "explain why the NPV has RISEN as a result of reducing the discount rate from 14% to 10%"

2. Requirement 2 Excel spreadsheet part a (NPV with the new data)

3. Requirement 2 Excel spreadsheet part b (with change of discount rate)

4. Requirement 2 Excel spreadsheet part c (IRR discount rate used in calculation)

5. Requirement 2 Excel spreadsheet part d

Data Example E 5 Cost of equipment needed $60,000 $100,000 Working capital needed 7 Overhaul of equipment in four years $5,000 B Salvage value of the equipment in five years $10,000 Annual revenues and costs $200,000 0 Sales revenues 1 Cost of goods sold $125,000 2 out-of-pocket operating costs $35,000 3 Discount rate 14% 5 Enter a formula into each of the cells marked with a below 6 Exhibit 13.6 9 Purchase of equipment 0 Investment in working capital 1 Sales 2 Cost of goods sold 3 Out-of-pocket operating costs 4 Overhaul of equipment 25 Salvage value of the equipment 6 Working capital released 7 Total cash flows (a 28 Discount factor (14%) (b) 29 Present value of cash flows (a) x (b) 0 Net present value 32 Use the formulas from Appendix 13B 33 Present value of $1 1/(1+ronn 4 Present value of an annuity of $1 (1/r) (1-(1/(1+rYn)) 5 where n is the number of years and r is the discount rate ?I Years