please help , would like to see how you complete worksheet to see if im on the right track , and complete problems. thank you
Required information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in the text. LE EXHIBIT 14-8 The Net Present Value Method-An Extended Example A B D E G 1 Year Now 2 1 2 3 4 5 3 Purchase of equipment $ 160,000) 4 Investment in working capital $ (100,000) 5 Sales $ 200,000 $ 200,000 $ 200,000 $ 200,000 $200,000 6 Cost of goods sold S (125,000) S (125,000) S (125,000) S (125,000) S (125,000) 7 Out-of-pocket costs for salaries, advertising, etc. $ (35,000) $ (35,000) $ (35,000) $ (35,000) $ (35,000) 8 Overhaul of equipment $ (5,000) 9 Salvage value of the equipment $ 10,000 10 Working capital released $ 100,000 11 Total cash flows (a) $ (160,000) $ 40,000 $40,000 $ 40,000 $35,000 $150,000 12 Discount factor (14%) (b) 1.000 0.877 0.769 0.675 0.592 $ 0.519 13 Present value of cash flows (a) (b) $ (160,000) $ 35,080 S 30,760 $ 27,000 $ 20.720 $ 77,850 14 Net present value (SUM B13:13) s 31.410 15 16 Note: The discount factors come from Exhibit 148-1 in Appendix 148. 17 Exhibit 14-8 Edhe 14.9 Exhibit 1410 Exhib14-11 Echt Source Microsoft Excel 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 14B-1 and Exhibit.148-2. (Use appropriate factor(s) from the tables provided.) B Chapter 14: Applying Excel 1 2 Data Example 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 $ $ $ $ 240,000 30,000 10,000 30,000 won $ 415.000 280,000 75.000 11% 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.) Net present value