Step 2: Then enter formulas in all cells that contain question marks. For example, in cell C21 enter the formula = 810". Important Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Appendix 13B. Step 3: Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56,400 and $56,535 (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. If you did not use formulas to calculate the Discount Factors, be sure that those values are updated appropriately using the Appendix 13B formulas that are also noted at the bottom of the spreadsheet instead of using the Discount Factor tables. Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions. Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount factors) using tables, Chapter 12: Applying Excel: Exercise 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.) B S S A 1 Chapter 12: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years 7 & Salvage value of the equipment in five years Annual revenues and costs: 9 Sales revenues 10 Cost of goods sold 11 Out-of-pocket operating costs 12 Discount rate 13 330,000 55,000 40,000 S S 35,000 S 425,000 250,000 S S 75,000 14% 40,000 35,000 S uvemaui or equipment in four years Salvage value of the equipment in five years Annual revenues and costs 9 Sales revenues 10 Cost of goods sold 11 Out-of-pocket operating costs 12 Discount rate 13 S S 425,000 250,000 75,000 S 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 nearest whole dollar.) Net present value $ (18,632) 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 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? Minimum salvage value required to generate a positive net present value $ 70,874