*Please show formulas*

Required information The Chapter 12 Form worksheet is to be used to create your own worksheet version of Example E and Ext 12-8 in the text. Download the Applying Excel form and enter formules in all cells that contain question marks. For example, in cell 21 enter the formula 'B10". Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Anpendix 13B Verify that your worksheet matches the example in the text. Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56.400 and $56 535 depending on the precision of the calculations. If you do not get an answer in this range, find the errors in your worksheet and correct them if you did not use formulas to calculate the Discount Factors, be sure that those values are updated appropriately using the Appendix 138 formulas that are also noted at the bottom of the spreadsheet instead of using the Discount Factor tables Click here to view Exhibit and Exhibi882, to determine the appropriate discount factors using tables. EXHIBIT 128 The Net Present Value Method-An Extended Example UP w m um D G 2 Now 2 4 5 3 Purchase of equipment S (60,000) 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) $(125,000) S (125,000) 7 Out-of-pocket costs for salaries, advertising, etc. $ (35,000) $ (35,000) S (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) S (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) S 35,080 S 30,760 S 27,000 $20,720 S 77,850 14 Net present value (SUM B13:13) $ 31,410 15 16 Note: The discount factors come from Exhibit 12B-1 in Appendix 128. Exhibit EXHIBIT 13B-1 Present Value of $t; Net Periods 4% 59 7% 8% 9% 10% 11% 12% 133, 1415 15% 16% 17% 18% 19% 20% 21% 22% 23 24 25 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2. 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.7180.706 0.694 0.683 0.672 0661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0551 0.537 0.524 0512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0 564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.299 0.275 0.262 7 0.750 0.711 0.665 0.623 0.583 0.547 0.513 0482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0249 0.235 0 222 0.210 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0179 0.168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0 391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0237 0.215 0.195 0.179 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12. 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.008 0.078 0 069 0062 0.035 0.049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0028 17 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0,052 0.045 0.039 0.034 0.030 0.026 0.023 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0044 0.038 0.032 0028 0.024 0.021 0018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0051 0.043 0.037 0.031 0.027 0023 0.020 0017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0043 0.037 0.031 0.025 0.022 0019 0016 0.014 0012 21 0.439 0.359 0.294 0 242 0.199 0 164 0.135 0.112 0.093 0.077 0064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0015 0.013 0011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.025 0.022 0.018 0.015 0.013 0011 0009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0022 0.018 0015 0,012 0.010 0009 0.007 0.006 24 0.390 0.310 0 247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0043 0.035 0.028 0023 0.019 0,015 0,013 0010 0.008 0.007 0.006 0.005 25 0.375 0.295 0.233 0.184 0 146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0016 0.013 0010 0.009 0.007 0.006 0.005 0.004 26 0.361 0.281 0220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0011 0009 0007 0006 0005 0.004 0.003 27 0.347 0.268 0 207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0018 0.014 0.011 0009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.000 0.069 0.054 0042 0.033 0026 0.020 0016 0012 0.010 0008 0.006 0.005 0.004 0.003 0.002 0.002 29 0.321 0.243 0.185 0.141 0.107 0.002 0.06 0.048 0.037 0.029 0,022 0.017 0014 0011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.009 0075 0.052 0044 0.033 0.026 0.020 0,015 0.012 0.000 0.007-0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0 142 0.097 0.067 0.006 002 002 0015 0011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 1382 Present Value of an Annuity of the Arrears 1 Periods 48 5% 6% 79 8% 9% 10% 11% 12% 13% 14% 154 16% 17 18% 19% 20% 21% 22% 23% 24% 25% 0962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0347 0.840 0.833 0.826 0.870 0813 0.806 0.800 1.886 1.859 1.833 1.808 1.783 1.759 1736 1713 1690 1.668 1647 1.626 1605 1.585 1.566 1.547 1528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2444 2.402 2361 2.322 2.283 2.246 2210 2.174 2.140 2 106 2074 2.042 2011 1981 1952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2 855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2448 2404 2362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 2352 3.274 2199 3 127 3058 2.991 2.926 2.864 2.803 2745 2689 6 5.242 5.076 4.917 4.767 4.623 4.486 4 355 4.231 4111 3.998 3.889 3.784 3.685 3589 3.498 3.410 3.326 3.245 3 167 3.092 3.020 2951 7 6.002 5.786 5.582 5.389 5.206 5.033 4868 4712 4.564 4423 4288 4160 4.039 3.922 3.812 3706 3.605 3.508 2416 2.3273.242 3.161 8 6.733 6.463 6.2105.971 5.247 5.535 5335 5.146 4.968 4.799 4.639 4.487 4 344 4.207 407B 3.954 3.837 3726 3619 3518 3.421 3329 9 7.435 7 108 6.802 6.515 6.247 5.995 5.759 5.537 5 328 5.132 4946 4.722 4.607 4451 4,303 4163 4.031 3905 3.786 3673 3.566 3.463 10 8.111 7.722.7.360 7024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4,339 4.192 4.054 3.923 3.799 3.682 3571 11 8.760 8.306 7.88774997199 6.805 6.495 6.207 5.939 5587 5.453 5 234 5.029 48364656 4.486 4327 4177 4.025 3902 2.776 3656 12 9.385 8.8638.384 79437.5367.161 6814 6.492 6. 194 5918 5660 5.421 5.192 4.988 4.793 4.611 1439 4:278 4127 3985 3.851 3.725 13 9.986 9394 8.853 8.358 7.904 487 7.103 6.750 6.424 6.122 5.842 5583 5 342 5.118 4.910 4.715 4533 4.362 4203 4.053 3912 3.780 14 10.563 9.899 9.295 8.745 8.244 7.786 7 367 6982 6.628 6 302 6.002 5.724 5.468 5.229 5008 4.802 4611 4432 4.265 4 108 3.962 3.824 15 11.118 10 380 9.712 9.108 85598.061 7.606 7.191 6811 6.462 6.142 5.847 5.575 5.324 5.092 4876 4.675 4.489 4315 4.153 4.001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7379 6974 6604 6 265 5.054 5668 405 5.162 4.938 4730 4.536 4.257 4.189 4033 3887 17 12. 166 11 274 10.477 9763 9 122 8544 8.022 7 549 7 120 6.229 6.373 6047 5 749 5.475 5.222 4990 4775 4.576 4 391 4.219 4059 3.910 18 12.659 11690 10.828 10.05993728.756 8201 7.702 7.250 6.840 6.467 628 5.818 5534 5.2735033 4.812 4.608 4419 4243 4.080 3928 19 13:134 12085 11.159 10.336 9.6048.950 8.365 78397.366.6.938 6.50 6.198 5.877 5.584 5 316 5.070 4843 4635 4.442 4.263 4,097 3942 20 13.590 12 462 11470 10.594 9818 9.129 8.514 7.963 7.4697025 6623 6259 5.929 5628 5353 5. 101 4.870 4657 4.460 4.279 4 110 3954 21 14.029 12821 11.764 10.836 10.01% 9,292 8.649 8.02 7.5627 102 6 687 6.312 5973 5.65 5384 5.127 4.891 4.675 4.476 4 292 4.121 3.963 22 14.451 13. 163 12.042 11.061 101201 9.402 8.7728.17676452670 6743 6.259 5011 5.696 5.410 5.149 4.909 4 690 4488 4.302 4130 3.970 23 14.857 13.489 12.303 1 272 095808.883 26618 7230 67926399.6046 5.723 5.432 5.167 4.925 4.703 4499 4,311 4.137 3.976 24 15 247 13.799 12.540 11:469 TO 529 9.7075814811274235835 6. 073 5.746 5.451 51824937 413 4.507 4318 4 143 3981 25 15.622 14.094 12.782 11654 10,67592902234230 6.873 6.464 0975766 5.467 5 195 4.948. 4.721 4.514 4323 4.147 3.995 26 15 983 14.375 13.003 11826 10 81026054915. 1185.783 5 480 5 206 4 956 4728 4520 4328 4 151 3.988 27 16.330 14.643 13.211 11971003 27293 4 6136 5 798 5.492 5.215 4964 4734 4524 4332 41543990 28 16.663 14.898 13.406 12137 11.051 159000 6961 6504 6.152 5810 502 5 223 4970 4.739 4528 4 335 4.157 3.992 29 16984 15.141 13.591 12278 111581002270 5.683 6.5 6166 5.820 5510 5229 4975 4.743 4531 4.337 4.159.3994 30 17.292 15.372 12765 12.409 11.25 107694305496700765666172 5829 5 517 5235 4979 4 746 4 534 4339 4 160 3.995 40 19.793 17.159 15:046 133321125 105 6.642 6233 5.8715.548 5 258 499747604 544 4347 4.166 3999