Chapter 14 Excel Simulation i Saved Help Save & Exit Submit Check my work Required information 12 The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in the points text. Book 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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) Print A B C 1 Chapter 14: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed 130,000 6 Working capital needed 55,000 7 Overhaul of equipment in four years 10,000 8 Salvage value of the equipment in five years 35,000 9 Annual revenues and costs: 10 Sales revenues 400,000 11 Cost of goods sold $ 280,000 12 Out-of-pocket operating costs 85,000 3 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 $ Mc Graw Chapter 14 Excel Simulation i Saved Help Save & Exit Submit Check my work Required information 12 Out-of-pocket operating costs $ 85,000 12 13 Discount rate 13 % points Book 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.) Print 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 0 % and 0% 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 Mc Graw