The company is considering another project involving the purchase of new equipment. Change the data area of your worksheet to match the following:

	A	B	C	D	E
1	Chapter 11: Applying Excel
2
3	Data
4	Example B
5	Cost of equipment needed			$349,000
6	Working capital needed			$140,000
7	Overhaul of equipment in	8	years	$15,000
8	Salvage value of the equipment in	11	years	$40,000
9	Annual revenues and costs:
10	Sales revenues			$435,000
11	Cost of goods sold			$260,000
12	Out-of-pocket operating costs			$90,000
13	Discount rate			16%

(a)	What is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round discount factor(s). Round your intermediate and final answer to the nearest dollar amount.)

Net present value

$

(b)	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.)?

The internal rate of return is between

% and %

(c)	Reset the discount rate to 16%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive present value? (Round final answer to the closest thousand.)

Minimum salvage value required to generate a positive NPV

$