This is all part of one question. I'm really not sure how I set up the spreadsheet like Exhibit 14-8 and get the correct solutions.

EXHIBIT 14-8 The Net Present Value Method-An Extended Example A B C D E F G Year Now 1 2 3 4 5 3 Purchase of equipment $ (60,000) 4 Investment in working capital $ (100,000) 5 Sales $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 6 Cost of goods sold $ (125,000) $ (125,000) $ (125,000) $ (125,000) $ (125,000) 7 Out-of-pocket costs for salaries, advertising, etc. $ (35,000) $ (35,000) $ (35,000) $ (35,000) $ (35,000) 8 Overhaul of equipment $ (5,000) 9 Salvage value of the equipment $ 10,000 10 Working capital released $ 100,000 11 Total cash flows (a) $ (160,000) $ 40,000 $ 40,000 $ 40,000 $ 35,000 $ 150,000 12 Discount factor (14%) (b) 1.000 0.877 0.769 0.675 0.592 0.519 13 Present value of cash flows (a) x (b) $ (160,000) $ 35,080 $ 30,760 $ 27,000 $ 20,720 $ 77,850 14 Net present value (SUM B13:G13) 31,410 15 16 Note: The discount factors come from Exhibit 148-1 in Appendix 148. 17 1 4 Exhibit 14-8 / Exhibit 14-9 / Exhibit 14-10 / Exhibit 14-11 / Exhibit Source: Microsoft Excel2. 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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) A B C 1 Chapter 14: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed '5 310,000 6 Working capital needed $ 35,000 7 Overhaul of equipment in four years $ 35,000 8 Salvage value of the equipment in ve years $ 40,000 9 Annual revenues and costs: 10 Sales revenues $ 415,000 11 Cost of goods sold $ 250,000 12 Out-of-pocket operating oosts $ 80,000 13 Discount rate 12 % 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 (9.9., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc)? 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 salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value