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Please solve attached excel sheet d2fd37ab2971f6c1e4f59e2b17c21fee630ea0b3.xlsx Chapter 11: Applying Excel Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four

Please solve attached excel sheet

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d2fd37ab2971f6c1e4f59e2b17c21fee630ea0b3.xlsx Chapter 11: Applying Excel Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate $60,000 $100,000 $5,000 $10,000 $200,000 $125,000 $35,000 14% Enter a formula into each of the cells marked with a ? below Exhibit 11-7 Now Purchase of equipment Investment in working capital Sales Cost of goods sold Out-of-pocket operating costs Overhaul of equipment Salvage value of the equipment Working capital released Total cash flows (a) Discount factor (14%) (b) Present value of cash flows (a) x (b) Net present value 1 Years 3 2 ? ? ? ? ? ? *Use the formulas from Appendix 13B: 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 Page 1 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? d2fd37ab2971f6c1e4f59e2b17c21fee630ea0b3.xlsx 4 5 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Page 2

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