Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ution Chapter 12 Excel - Connect 12 Excel Saved Help Save & Exit Submit Check my work 2. The company is considering a project involving
ution Chapter 12 Excel - Connect 12 Excel Saved Help Save & Exit Submit Check my work 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 Exhibit 128:1 and Exhibit 128-2. (Use appropriate factor(s) from the tables provided.) $ $ 1 Chapter 12: Applying Excel 2 3 Data 4 Examplo E 5 Cost of equipment needed 6 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 340,000 50,000 30,000 20,000 5 5 ces $ $ $ 415,000 275,000 50,000 10 % 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) Not presont value 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.) Net present value 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 10%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvago value required to generate a positive present value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started