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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

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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 Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C21 enter the formula =B10" Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulos in Appendix 148. 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 th 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 calculate the Discount Factors, be sure that those values are updated appropriately using the Appendix 148 formulas that are also noted at the bottom the spreadsheet instead of using the Discount Factor tables. Click here to view Exhibit 146-1 and Exhibit 1482. to determine the appropriate discount factor(s) using tables. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click Save." You will use this worksheet to answer the questions in Part 2 Chapter 14: 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 14-8 Years 3 1 2 4 5 ? ? + ? ? ? ? ? 2 ? ? ? 2 ? ? ? ? ? ? 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%) ) Present value of cash flows (6)x(b) Net present value 2 "Use the formulas from Appendix 13B Prosent value of $1 = 1/(1+ryn Present value of an annuity of $1 = (1/1)*(1-(1/(1+rY"n)) Wheren is the number of years and is the discount rate ? ? ? ? ? ? ? ? ? ? 7 ? ? ? ? ? ? ? ? ? ? 1 3 5

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