Please be done in excel!!!

The Excel worksheet form that appears below is to be used to recreate Example E and Exhibit 7-8. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form. D E E F G Years 3 2 4 5 A B 1 Chapter 7: Applying Excel 2 3 Data 4 Example E 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 9 Annual revenues and costs: 1 Sales 10 Sales revenues $200.000 11 Cost of goods sold $125,000 12 Out-of-pocket operating costs $35,000 13 Discount rate 14% 14 15 Enter a formula into each of the cells marked with a ? below 16 Exhibit 7-8 17 18 Now 1 1 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 w 25 Salvage value of the equipment 26 Working capital released 27 Total cash flows (a) ? ? ? 28 Discount factor (14%) (b) ? ? 29 Present value of cash flows (a) (b) ? ? 30 Net present value ? 31 32 "Use the formulas from Appendix 7B 33 Present value of $1 = 1/(1+r)^n 34 Present value of an annuity of $1 = (1/1)*(1-(1/(1+r)^n)) 35 where n is the number of years and r is the discount rate 36 H + Chapter 7 Form_Filled in Chapter 7 Form Chapter 7 Formul 7 ? ? ? ? 2 ? ? ? ? ? ? ? ? ? ? ? ? ? 2 ? ? ? 2 ? ? ? ? ? ? ? You should proceed to the requirements below only after completing your worksheet. Note that you may get a Page 379 slightly different net present value from that shown in the text due to the precision of the calculations. Required: 1. Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56,495 and $56,518-depending 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. Explain why the net present value has increased as a result of reducing the discount rate from 14% to 10%. 2. The company is considering another project involving the purchase of new equipment. Change the data area of your worksheet to match the following: 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: $120,000 $80,000 $40,000 $20,000 Sales revenues Cost of goods sold Out-of-pocket operating costs Discount rate $255,000 $160,000 $50,000 14% a. What is the net present value of the project? b. Experiment with changing the discount rate in one percent increments (e.g., 13%, 12%, 15%, etc.). At what interest rate does the net present value turn from negative to positive? 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.)? d. Reset the discount rate to 14%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value