PLEASE ROUND INTERMEDIATE VALUES TO THE NEAREST WHOLE DOLLAR AND THE PRESENT VALUE TO THREE DECIMALS

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 12B-1 and Exhibit 12B-2. (Use appropriate factor(s) from the tables provided.) A B 1 Chapter 12: Applying Excel 2 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: 310,000 20,000 35,000 30,000 $ 8 $ 9 10 Sales revenu $ 11 $ 400,000 250,000 50,000 Cost of goods sold Out-of-pocket operating costs Discount rate 12 $ 13 18 % 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.) Net present value $ (12,200) 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.)? The internal rate of return is between 17% and 18 % d. Reset the discount rate to 18%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value $ 279,118