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-2. Note: Use appropriate factor(s) from the tables provided. Chapter 14: Applying ExcelDataExample ECost of equipment needed$ 150,000Working capital needed$ 40,000Overhaul of equipment in four years$ 15,000Salvage value of the equipment in five years$ 40,000Annual revenues and costs: Sales revenues$ 375,000 Cost of goods sold$ 280,000 Out-of-pocket operating costs$ 55,000Discount rate14% a. What is the net present value of the project? Note: 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. 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.)? 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

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 and Note: Use appropriate factor(s) from the tables provided. a. What is the net present value of the project? Note: 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. 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.)? 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