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Please help with A and D. text. 2. The company is considering a project involving the purchase of new equipment. Change the data area of
Please help with A and D.
text. 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 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) points | 1 Chapter 13: Applying Excel 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 9 Annual revenues and costs: 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate $ $ $ $ 270,000 30,000 15,000 35,000 S $ $ 400,000 255,000 70,000 13 % Required information 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.) points * Answer is complete but not entirely correct. Net present value S (26,415) X c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? Answer is complete and correct. 13 % and The internal rate of return is between 12 % d. Reset the discount rate to 13%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? X Answer is complete but not entirely correct. Minimum salvage value required to generate a positive present value $ 83,646 %Step by Step Solution
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