Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following 2. The
The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following
2. The company is considering a project involving the purchase of new equipment. Change the date sres of your worksheet to match the following: A B *** 1 Chapter 12: Applying Excel 2 " 3 4 5 S min 6 350,000 45,000 35,000 40,000 S Data Example E Cost of equipment needed Working capital needed Overhaul al equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales revenues Cast of goods sold Out-of-pocket operating costs Discount rate 7 $ 8 9 S 10 11 415,000 255,000 60.000 14% $ 12 13 6. 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.) Answer is complete but not entirely correct. Net present value 2,134,485 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.)? Answer is complete but not entirely correct. The internal rate of return is between 10 % and 11 x % d. Reset the discount rate to 1495. Suppose the salvage value is uncertain. How large would the salvege value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started