Please use the attached spreadsheet to complete question 2 (attached).

qattachments_44a6355e62c64998e79e929895f70f2fccd0846e.xls Chapter 11: Applying Excel Data Example B Cost of equipment needed Working capital needed Overhaul of equipment in Salvage value of the equipment in 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 4 years 5 years $200,000 $125,000 $35,000 10% Enter a formula into each of the cells marked with a ? below Exhibit 11-2 Sales revenues Less cost of goods sold Less out-of-pocket costs Annual net cash inflows Purchase of equipment Working capital needed Overhaul of equipment Annual net cash inflows from sales of the product line Salvage value of equipment Working capital released Net present value $ 200,000 $125,000 $35,000 $ 40,000 Year(s) Now Now ? 1- ? ? ? *Use the formulas from Appendix 11B: 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 Amount of Cash Flow ? ? ? $ 40,000 ? ? ? Factor* 1.000 1.000 ? ? ? ? Present Value of Cash Flows ? ? ? ? ? ? ?