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 148-2 (Use appropriate factor(s) from the tables provided.) A 1 Chapter 14: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed $ 230,000 6 Working capital needed $ 55.000 7 Overhaul of equipment in four years $ 15.000 4 8 Salvage value of the equipment in five years $ 20.000 9 Annual revenues and costs 10 Sales revenues 11 Cost of goods sold 555 12 Out-of-pocket operating costs 420,000 265.000 90.000 14 % 13 Discount rate Search Prev 1 of 1 Next 87F Clear 99 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 (eg, 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 value EXHIBIT 148-1 Pratent Value of St Periods 4% 5% 6% 1 2 0.925 0907 0.890 0873 0.857 3 0.889 0.064 0.840 0.816 0794 4 5 B 10 " 12 P 14 TO 10 37 30 0168 0.537 0.524 0.512 C 7% 8% 9% 10% 11% 12% 175 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0826 0820 0.813 0.806 0.800 0.842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.772 0.751 0731 0712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0855 0823 0792 0763 0735 0.708 0.683 0.659 0.636 0.613 0.592 0572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0437 0423 0.410 0.022 0.704 0.747 0713 0681 0650 0621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0437 0.419 0.402 0.386 0.370 0.355 0.341 0328 0790 0746 0705 0666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.209 0.275 0.262 7 0.760 0711 0665 0623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0279 0.263 0.249 0.235 0.222 0.210 0731 0.677 0627 0582 0540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.28 0.204 0191 0179 0.100 0703 0645 0.592 0544 0.500 0.460 0.424 0.391 0361 0.333 0.308 0.284 0263 0.243 0.225 0.209 0294 0.180 0167 0155 0344 0134 0676 0614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.2 0.208 0.191 0.176 0162 0149 0137 0126 0116 0107 6650 0.505 0527 0475 0429 0.388 0.350 0.317 0287 0201 0237 0.215 0195 0178 0162 0140 0135 0123 0112 0103 0094 0.006 0625 0557 0497 0.444 0397 0.356 0319 0.286 0257 0231 0.208 0187 0152 0137 0124 0112 0102 0.092 0.003 0.076 0.069 0.001 0.530 0469 0415 0368 0326 0290 0.258 0229 0204 0382 0163 0145 0130 0116 0104 0.093 0.004 0.075 0068 0061 0.055 0577 0505 0442 0308 0340 0.299 0.263 0.232 0205 0181 0360 0341 0125 01 0099 0088 0078 0.000 0.062 0055 0.049 0.044 0.555 0401 040 0362 0315 0275 0239 0209 013 0160 0140 0123 030 0095 0004 0.074 0.065 0.057 0051 005 0040 0015 0534-0458 0394 0339 0.292 0.252 0218 0188 0163 0341 0123 0307 0093 0081 0.071 0.062 0054 0047 0042 0.036 0.002 0.0211 0.513 0496 0371 0317 0220 0231 0190 0170 0146 0125 0108 0.003 0.080 0069 0060 0.052 0.045 0.009 0034 0000 0026 00231 0494 0.4 0.350 0.296 0.250 0.212 0180 0153 0130 0 0095 0001 0.069 0.059 0.051 0044 0.038 0.032 0.028 0.024 0.021 00m 0475 0396 0331 0277 0232 0.194 0164 0130116 0.098 0.003 0.070 0060 0051 0.043 0.037 0.031 0.027 0023 0020 0.017 0.014) 20 0.456 0377 0312 0258 0215 0178 0349 0124 0304 0.007 0.073 0061 0.051 0.043 0.037 0.031 0.026 0.022 0.09 0.0% 0.014 0.012 21 0439 0359 0294 0242 0199 0164 0135 0112 0093 0.077 0.064 0053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.003 0.01 0.009 0422 0342 0279 0226 0184 0150 0123 0101 0.083 0.068 0.056 0.046 0.038 0032 0.025 0.022 0.018 0.015 0.013 0.01 0.009 0.007 0170 0130 0112 0091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0158 0126 0102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0146 0116 0092 0.074 0.059 0.047 0.000 0.00 0.024 0.020 0.0% 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0106 0.004 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.04 0.01 0.009 0.007 0.006 0.005 0.004 0.003 0.098 0.076 0060 0047 0037 0.029 0.023 0.018 0.014 0.01 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.090 0.069 0.054 0042 003 0.026 0020 0.0% 0.012 0.010 0.000 0.006 0.005 0.004 0.003 0.002 0.002 0.082 0.063 0.048 0.037 0029 0022 0017 0014 00m 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.099 0.075 0.057 0.044 0.033 0026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0000 0000 0000 0000 22 29 0406 0326 0262 0211 24 0390 0310 0247 0197 25 0375 0295 0233 0194 20 0361 0281 0220 0172 26 27 0347 020 0207 0161 0333 0255 0196 0150 0135 0125 0350 29 0321 0243 0105 0341 0307 20 0300 0231 0174 0121 40 0208 0542 0097 0.067 0.046 0032 0022 0.015 0.01 EXHIBIT 148-2 Present Value of an Annuity of $1 in Arreart; 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0826 0.820 0.813 0.806 0.800 1736 1713 1690 1668 1647 1626 1605 1585 1566 1547 1528 1509 1492 1474 1457 1440 2.487 2.444 2.402 2.361 2.322 2283 2246 2.210 2174 2540 2106 2074 2042 2011 1981 1952 3.170 3102 3037 2.974 2.914 2.855 2798 2743 2690 2.639 2589 2540 2.494 2.448 2.404 2362 3.791 3.696 3.605 3.517 3.433 1.352 3.274 3.199 3127 3.058 2.991 2926 2864 2.803 2745 2.689 4.355 4.231 411 3.998 3.889 3784 3.685 3.589 3.498 3410 3.326 3.245 3167 3092 3020 2.951 4.068 4712 4.564 4.423 4288 4160 4.039 3922 3812 3706 3.605 3508 3.4% 3.327 3.242 3381 5.335 5146 4.968 4799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3726 3619 3.58 3.421 3.329 5759 5537 5328 5132 4946 4772 4607 4451 4.303 4563 4031 3.905 1786 1673 3566 3.463 6145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3923 3.799 3.682 3.571 6.495 6.207 5.938 5687 5.453 5234 5.029 4836 4656 4.406 4.327 4177 4.035 3.902 1776 3656 6014 6402 614 598 5.660 5421 5.107 4.900 4793 461 4439 4278 4127 1905 3.851 3725 7503 6.750 6424 6122 5842 5503 5342 57 4910 4715 4533 4362 4.203 4053 3912 3780 7367 6.902 6628 302 6002 5724 5408 5.229 5008 4002 4.011 4412 4265 410 1962 1824 7.606 2101 6.2 6.402 6142 5047 5.575 5.324 5.092 4.876 4675 4409 4.315 4153 4001 3.859 6604 6205 5.954 5660 5405 362 4938 4730 4536 4357 409 4033 3887 5.749 5.475 5.222 4990 4775 4576 4.391 4.219 4059 3910 58 5534 5273 5033 4812 4.608 4419 4243 4.080 3.928 5.877 5.584 5.316 5070 4.043 4635 4442 4263 4097 3.942 4870 4.657 4.400 4.279 4110 3.954 8649 8.075 7562 2102 6687 6312 5.973 5665 5304 5127 4891 4675 4476 4292 4.121 3963 0772 176 2045 7170 6743 6.259 6.0 5.606 5410 5340 4909 4690 4488 4.302 4130 3970 8883 6266 771 7230 6792 6399 6044 5723 5432 5367 4.925 4703 4499 4311 4117 3.976 2985 348 7784 7283 6835 6434 6.073 5746 5.451 5182 4937 4713 4507 438 4143 3.901 9077 8422 7843 7330 6873 6.464 6097 5756 5467 5195 4948 4721 4514 4.323 4147 3.985 9361 438 7096 2372 6906 6491 6 5783 5.480 5.206 4956 4728 4.520 4328 4351 3.900 0237 548 7943 7409 6935 6.514 6136 5798 5.492 5.215 4964 4734 4524 4332 4.154 3.990 9307 8.602 7904 7441 6961 6534 6152 5810 5502 5223 4970 4739 452 4.335 4557 3992 9370 8.650 8022 7470 6.983 6.551 6166 5.820 5.510 5.229 4975 4743 4531 4.337 4159 3.904 9427 8604 8055 7496 2003 6.566 6177 5829 5507 5.235 4.979 4.746 4534 4339 4360 3.995 9.779 8951 8244 7634 7505 6642 6233 5871 5.548 5.258 4.997 4260 4544 4347 4366 3.999 7024 7379 6974 8.022 7549 7120 8.201 7702 7250 .365 7839 2366 8514 7063 7469 6729 6.373 6047 6340 6467 6128 6938 6550 6190 7025 6623 6259 5929 5628 5353 5301 Periods 4% 56 0962 0952 0.043 1906 1059 1833 2775 2.723 2673 3.630 2545 2465 4452 3329 4212 5242 5076 4917 6002 5756 5502 6733 6463 210 7435 2100 6802 6515 7% 85% 9% 0935 0.926 0.917 1800 1703 1759 2624 2.577 2.531 3.387 3.312 3.240 4100 3.993 3.890 4767 4.623 4400 5309 5206 5033 5.971 5747 6247 5.535 7722 7300 7024 6210 5.995 6418 8260 306 2007 0305 063 394 9.9069394 4053 10563 3999295 717 10.300 712 19 20 21 22 23 24 25 20 27 20 29 30 7499 1139 6.005 7943 7530 7161 358 2904 2487 2745 8244 1706 930 5559 001 11602 103 10105 9447 851 66 11274 0477 9763 9122 12659 1090 10.82 10059 9372 12134 12.045 15 10.336 2004 1590 12462 11470 10594 901 9120 14029 1221 11764 0.36 0.017 9292 SE451 13 12 042 11061 10.201 9.442 14.957 1409 12.303 11272 10.371 9500 15247 12799 12.550 11409 10529 9707 15622 14094 12.783 11654 10.575 9.823 15.000 14375 2003 11826 10109929 38330 14643 13211 1197 0905 10.027 16063 14090 13.400 12.137 11051 10.110 084 15341 13501 12.278 11358 10108 12292 15.272 11705 12.409 11.258 10.274 313 544 8756 .950 40 19793 17159 15046 11.332 11925 10.757 SAMSUNG