PLEASE ONLY ANSWER THE ?'S

4 5 6 7 8 9 10 11 12 13 15 16 19 20 21 22 23 24 25 26 27 28 29 30 32 33 34 35 Chapter 12: Applying Excel Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five Annual revenues and costs: Sales revenues Cost of goods sold Out-of-pocket o eratin costs Discount rate ears $60,000 $100,000 $6,000 $10,000 $200,000 $126,000 $36,000 Enter a formula into each of the cells marked with a ? below Exhibit 12-8 Now Purchase of equipment Investment in workin ca tal Sales Cost of goods sold Out-of-pocket operatin costs Overhaul of equipment Salvage value of the equipment Working capital released Total cash flows (a) Discount factor (14%) (b) Present value of cash flows a x b Net esent value *Use the formulas from Appendix 138 Present value of Sl = 1/(1+rrn Present value of an annuity of Sl = where n is the number of ears and r is the discount rate 2 Years 3 4 6