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please include the formulas needed in order to get the answers thanks begin{tabular}{|l|l|r|} hline 3 & Data & hline 4 & Example E &
please include the formulas needed in order to get the answers thanks
\begin{tabular}{|l|l|r|} \hline 3 & Data & \\ \hline 4 & Example E & $60,000 \\ 5 & Cost of equipment needed & $100,000 \\ 6 & Working capital needed & $5,000 \\ \hline 7 & Overhaul of equipment in four years & \\ \hline 8 & Salvage value of the equipment in five years & $10,000 \\ \hline 9 & Annual revenues and costs: & \\ \hline 10 & Sales revenues & $200,000 \\ \hline 11 & Cost of goods sold & $125,000 \\ \hline 12 & Out-of-pocket operating costs & $35,000 \\ \hline 13 & Discount rate & 14% \\ \hline \end{tabular} 14 15 Enter a formula into each of the cells marked with a? below 16 Exhibit 14-8 Chapter 14 Form Ready 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 14-8 \begin{tabular}{|l|l} \hline 17 & \\ 118 & Purchase of equipment \\ 20 & Investment in working capital \\ \hline 21 & Sales \end{tabular} 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Overhaul of equipment \begin{tabular}{|l|c|c|c|c|c|} \hline & \multicolumn{5}{|c|}{ Years } \\ \cline { 2 - 6 } Now & 1 & 2 & 3 & 4 & 5 \\ \hline \end{tabular} 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) \begin{tabular}{l|l} 28 & Discount factor (14%)(b) \\ 29 & Present value of cash flows (a)(b) \\ 30 & Net present value \\ 31 & \\ 32 & * Use the formulas from Appendix 13B: \end{tabular} Present value of $1=1/(1+r)n Present value of an annuity of $1=(1/r)(1(1/(1+r)n)) where n is the number of years and r is the discount rate Chapter 14 Form Ready Type here to searchStep by Step Solution
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