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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 In the text. 2.
Required Information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and In the text. 2. The company Is considering a prolect Involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use and (Use approprlate factor(s) from the tables provlded.) a. What is the net present value of the project? (Negatlve amount should be Indlcated by a minus sign. Round your present value factor to 3 decimals and round all other Intermedlate calculatlons to nearest whole dollar.) c. The Internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? d. Reset the discount rate to 15%. Suppose the salvage value is uncertaln. How large would the salvage value have to be to result in a positive net present value? EXHIBIT 14-8 The Net Present Value Method-An Extended Example EXHIBIT 14B-1 Present Value of \$1; (1++)21 EXHIBIT 14B-2 Present Value of an Annulty of \$1 in Arrears; r1[1(1+r)21]
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