The company is considering a project involving the purchase of new he following: Use Exhibit 14B-1 and Exhibit 14B-2. (Use appropriate fact B A Chapter 14: Applying Excel 1 2 2 4 5 6 Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: $ $ $ 350,000 45,000 30,000 40,000 7 8 $ 9 10 Sales revenues $ $ 11 405,000 230,000 75,000 12% Cost of goods sold Out-of-pocket operating costs Discount rate 12 $ 13 a. What is the net present value of the project? (Negative amount should be factor to 3 decimals and round all other intermediate calculations to neare Prey 1 of 1 ! Required information a. What is the net present value of the project? (Negative amount should be indicated by a 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% an and 13%, between 13% and 14%, etc.)? The internal rate of return is between and d. Reset the discount rate to 12%. Suppose the salvage value is uncertain. How large would the positive net present value? Minimum salvage value required to generate a positive present value Prey 1 of 1 Next