Chapter 13: Applying Excel: Exercise (Part 2 of 2) 2. The company is considering a project involving the purchase of new equipment. Changet the following: Use Exhibit 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables 1 Chapter 13: Applying Excel N 4 5 6 7 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 $ $ $ $ 240,000 30,000 10,000 30,000 9 10 11 $ $ $ 415,000 280,000 75,000 12 13 11 % 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 d. Reset the discount rate to 11%. 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