Chapter 13,Applying.Excel Student ,Formals - Read-Only - Conm Insert Draw Page Layout Farmulas Data Review View Help QuickBooksTell me wh File Home B27 B28 829 Example E Cost of equipment needed Working captal Ovethaul of equipment in four years $60,000 $100,000 $5,000 captal needed 8 Savage value of the equipment im five years $10,000 Annual revenues and costs 0 Sales revenues 11 Cost of goods sold 12 $125.000 $35,000 Dut-of pocket operating costs 14% 13 Discount rate 14 15 Enter a formufa inta each of the cells marked wth a 2 below 16 Exhibit 138 Years 17 18 Now S 60,000) S (100,000) Purchase of equipment 20 Investment in working capital s 200 000 s 200 000 S 200 000 s 200 000 s 200 000 126.000 S 125000 S 125,000 s 125,000 S 125,000 35000 35000 s 35 000 35,000 S 35,000 21 Sales 22 Cost of goods sold 23 Out of-pocket operating costs 24 Overhaul of equipmet 25 Salvage value of the equipment 25 Working capital released 27 Total cash Nows (a 28 Discount facto' (14%)(b 29 Present value of cash fows (aj x (o) 30 Net present value 55000 S 10000 S 100,000 160 000) 4000040 000 3 40 00 1 35 00 S (70000) 32 "Use the formulas from Appendoc 13B 33 Presaet value of $1 1N1+rn 34 : Presem value of an annuity of $1-(1/?(1'(M1+rm> 5 where n is the mumber of years and r is the discount rate 13 Form O Type here to search