please help me answer questions

a-d

Required information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in the text. 2. The company is considering a project involving the purchase of new equipment Change the data area of your worksheet to me the following: Use Exhibit 148:1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) B c 1 Chapter 14: Applying Excel 2 Data 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years 9 Annual revenues and costs: $ $ 240.000 30.000 10,000 30,000 $ $ 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.) A B 1 Chapter 14: Applying Excel 2 3 Data Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years 9 Annual revenues and costs 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate $ $ $ $ 240,000 30,000 10,000 30,000 $ $ $ 415,000 280,000 75,000 11 % 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.) $ (37,030) c. The internal rate of return is between what two whole discount rates (e.g, between 10land 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? The internate of return is between and % 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.)? of retum between % and 1% d. Reset the discount rate to 11%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvagn valse required to generate a positive prenent value EXHIBIT 14-8 The Net Present Value Method-An Extended Example B D E G 1 Year 2 Now 1 2 3 4 5 3 Purchase of equipment $ (60,000) 4 Investment in working capital $ (100,000) 5 Sales $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 6 Cost of goods sold S (125,000) S (125,000) S (125,000) S (125,000) S (125,000) 7 Out-of-pocket costs for salaries, advertising, etc. $ (35,000) S (35,000) S (35,000) S (35,000) S (35,000) 8 Overhaul of equipment $ (5,000) 9 Salvage value of the equipment $ 10,000 10 Working capital released $ 100,000 11 Total cash flows (a) $ (160,000) 40,000 $ 40,000 $40,000 $ 35,000 $ 150,000 12. Discount factor (14%) (b) 1.000 0.877 0.769 0.675 0.592 S 0.519 13 Present value of cash flows (a) (b) $ (160,000) $ 35,080 $ 30.760 $ 27.000 $ 20,720 S 77.850 14 Net present value (SUM 813:13) $ 31.410 15 16 Note: The discount factors come from Exhibit 148-1 in Appendix 148 17 Exhibit 14-8 Ent: 14.9 hot 1410 hot 14:11 Eno Source: Microcon Excel