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Please answer in Excel Formula 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years 8
Please answer in Excel Formula
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 $10,000 9 Annual revenues and costs 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate 14 15 Enter a formula into each of the cells marked with a? below 16 Exhibit 13-8 $60,000 $100,000 $5,000 $200,000 $125,000 $35,000 14% Years 18 19 Purchase of equipment 20 Investment in working capital 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Overhaul of equipment 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) 28 Discount factor (14%) (b) 29 Present value of cash flows (a) x (b) 30 Net present value 31 32 *Use the formulas from Appendix 13B 33 Present value of $1 1(1+rAn 34 Present value of an annuity of $1 (1/r)111+rhn)) 35 where n is the number of vears and r is the discount rate 36 37 NowStep by Step Solution
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