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.

*I need help with the formulas and less the actual numbers

A17 X D E F G H J K L M 14% Years 1 4 5 B 5 Cost of equipment needed $60,000 6 Working capital needed $100,000 7 Overhaul of equipment in four years $5,000 8 Salvage value of the equipment in five years $10,000 9 Annual revenues and costs: 10 Sales revenues $200,000 11 Cost of goods sold $125,000 12 Out-of-pocket operating costs $35,000 13 Discount rate 14 15 Enter a formula into each of the cells marked with a ? below 16 Exhibit 14-8 17 18 Now 19 Purchase of equipment ? 20 Investment in working capital ? 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Overhaul of equipment 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) 2 28 Discount factor (14%) (b) ? 29 Present value of cash flows (a) x (b) ? 30 Net present value ? 31 32 *Use the formulas from Appendix 13B 33 Present value of $1 = 1/(1+r)^n 34 Present value of an annuity of S1 = (1/1) (1-(1/(1+r)^n)) ? ? ? ? ? ? 2 ? ? 2 ? ? ? ? 2 ? ? ? 2 2 ? ? ? ? 2 ? ? ? 2