Question: I need help with the formulas for each question mark on the excel spread sheet. Check your worksheet by changing the discount rate to 10%.

I need help with the formulas for each question mark on the excel spread sheet.

Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56,518 and $56,535depending on the precision of the calculations. If you do not get an answer in this range, find the errors in your worksheet and correct them.

I need help with the formulas for each question mark on the

A B C D E F l Chapter 13: Applying Excel Data Example 5 Cost of equipment needed $60,000 6 Working capital needed $100,000 7 Overhaul of equipment in four years $5,000 8 Salvage value of the equipment in five years $10,000 g Annual revenues and costs $200,000 10 Sales revenues 11 Cost of goods sold $125,000 $35,000 Out-of-pocket operating costs 13 Discount rate 14% 14 15 Enter a formula into each of the cells marked with a below 16 Exhibit 13-7 17 Years 18 Now 1 2 3 4 5 19 Purchase of equipment 20 Investment in working capital 21 Sales 22 Cost of goods sold 23 Out-of-pocket operating costs 24 Overhaul of equipment 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) ?I 28 Discount factor (14%) (b) 29 Present value of cash flows (a) x (b) 30 Net present value 31 32 *Use the formulas from Appendix 13B: 33 Present value of $1 E 1/(1+r)An 34 Present value of an annuity of $1 (1/r*(1-(1/(1+r)nn) 35 where n is the number of years and r is the discount rate 36

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