The company is considering a project involving the purchase of new equipment.

Cost of equipment needed $110,000

Working capital needed $45,000

Overhaul equipment in four years $15,000

Salvage value of equipment in 5 years $20,000

Sales revenue $385,000

Cost of Goods sold $270,000

Out-of-Pocket operating costs $80,000

discount rate 14%

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.)

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.)?

Please show your work!:)

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?