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Thank you for your answers!! ! Required information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example
Thank you for your answers!!
! 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. 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 14B-1 and Exhibit 14B-2. (Use appropriate factor(s) from the tables provided.) A B 2 3 4 1 Chapter 14: Applying Excel 2 3 Data Example E 5 Cost of equipment needed Working capital needed 7 Overhaul of equipment in four years $ 6 $ $ $ 510,000 25,000 35,000 8 $ 40,000 Salvage value of the equipment in five years 9 Annual revenues and costs: 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate $ 420,000 215,000 60,000 14 % $ a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) Net present value 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.)? The internal rate of return is between % and % d. Reset the discount rate to 14%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present valueStep by Step Solution
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