Chapter 12: Applying Excel Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate $ $ $ LA A $ $ $ $ B 460,000 55,000 25,000 25,000 420,000 235,000 50,000 C 13 %

no information in b column

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 fe. 9 . between 10% and 11%, between 11% and 12%, between 12% and 13% between 13% and 14%, etc)? 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