two questions posted, infoemation provide

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.)? The internal rate of retum is between and d. Reset the discount rate to 17%. 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 2. The company is considering a project involving the purchase of new equ the following: Use Exhibit 13B-1 and Exhibit 13B-2. (Use appropriate factor B 1 Chapter 13: Applying Excel 2. 5 $ $ 3 Data 4 Example E Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years Salvage value of the equipment in five years 9 Annual revenues and costs: 10 Sales revenues Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate 210,000 20,000 20,000 35,000 $ 8 $ 11 $ $ $ 375,000 240,000 75,000 17 % 4 Example E 5 Cost of equipment needed 16 Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years -9 Annual revenues and costs 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate $210,000 $20,000 $20,000 $35,000 $375,000 $240.000 $75,000 17% 1 ns Enter a formula into each of the cells marked with a ? below 16 Exhibit 138 17 Years 18 Now 2 3 4 5 19 Purchase of equipment $ (210,000) 20 Investment in working capital $ (20,000) 21 Sales $ 375,000 $375,000 $375,000 $375,000 $375,000 22 Cost of goods sold $ (240,000) S (240,000) S (240,000) S (240,000) S (240,000) 23 Out-of-pocket operating costs S (75.000) S (75,000) S (75,000) S (75,000) S (75.000) 24 Overhaul of equipment 5 (20,000) 25 Salvage value of the equipment $ 35.000 26 Working capital released $ 20.000 27 Total cash flows (a) (230,000) $ 60.000 $60,000 $60,000 S 40,000 $ 115,000 28 Discount factor (14%) (b) 1.000 0.855 0.731 0.624 0.534 0.456 29 Present value of cash flows (a) (b) $ 230.000) $ 51,300 $ 43,860 S 37.440 SSR.360 $ 52,440 30 Net present value $ 23,600) 31