Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Appendix 12B. Verify that your worksheet matches the example in the text. also noted at the bottom of the spreadsheet instead of using the Discount Factor tables. \begin{tabular}{l|l} 2 & \\ 3 & Data \end{tabular} 4 Example E \begin{tabular}{l|lr} \hline 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 \end{tabular} 9 Annual revenues and costs: \begin{tabular}{|l|l|r|} \hline 10 & Sales revenues & $200,000 \\ \hline 11 & Cost of goods sold & $125,000 \\ 12 & Out-of-pocket operating costs & $35,000 \\ \hline 13 & Discount rate & 14% \\ \hline 14 & \end{tabular} 14 15 Enter a formula into each of the cells marked with a ? below 16 Exhibit 12-8 *Use the formulas from Appendix 13B: Present value of $1=1/(1+r)nn Present value of an annuity of $1=(1/r)(1(1/(1+r)nn)) where n is the number of years and r is the discount rate