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- (Use appropriate factor(s) from the tables provided.)

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Chapter 14: Applying Excel
Data
Example E
Cost of equipment needed	$240,000
Working capital needed	$30,000
Overhaul of equipment in four years	$20,000
Salvage value of the equipment in five years	$20,000
Annual revenues and costs:
Sales revenues	$365,000
Cost of goods sold	$210,000
Out-of-pocket operating costs	$85,000
Discount rate	14	%

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?