1 2 A B C Chapter 14: Applying Excel 3 Data 4 Example E 5 Cost of equipment needed $ 370,000 6 Working capital needed $ 30,000 7 Overhaul of equipment in four years $ 30,000 8 Salvage value of the equipment in five years $ 30,000 9 Annual revenues and costs: 10 Sales revenues $ 405,000 11 Cost of goods sold $ 225,000 12 Out-of-pocket operating costs $ 80,000 13 Discount rate 13 % 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 return is between % and % d. Reset the discount rate to 13%. 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