1 Chapter 12t Applying Excel 15 Enter a fomula into bech of the ceds marked weh a ? bolow 16 Exhibit 12-8 17 18 19 Purchase of equipment 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Oremaul of equigment 25 Salvage value of the equipment 26 Working captal released 28 Disoount factor (14%) (b) \begin{tabular}{l} 29 Disoount factor (14)(b) \\ \hline 30 Prent value of cash fow (a) (O) \end{tabular} Net present value Use the fomrulas from Appendx 13B. Present value of 51=1+1+1)2 o where n is the number of years and r is the decount rate 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 12B-1 and Exhibit 128-2. (Use appropriate factor(s) from the tables provided.) 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 (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? 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.)? d. Reset the discount rate to 15\%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value