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Part 2 of 2 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to
Part 2 of 2 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.) 5 points A B C 1 Chapter 12: Applying Excel eBook 2 3 Data Print 4 Example E References 5 Cost of equipment needed $ 430,000 6 Working capital needed $ 40,000 7 Overhaul of equipment in four years $ 50,000 8 Salvage value of the equipment in five years $ 30,000 9 Annual revenues and costs: 10 Sales revenues $ 425,000 11 Cost of goods sold $ 230,000 12 Out-of-pocket operating costs $ 65,000 13 Discount rate 14 % Part 2 of 21 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.) 5 paints Nel present value Print References 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 intemal rate of return is between % and % d. Reset the discount rate to 14%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value
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