Question: The company...please see below Required informatiom The Chapter 14 Form worksheetisto be use&to createyourowmworksheetversionof ExampleEand Exhibit 14-8 in the The company is considering a projectinvoivingthe
Required informatiom The Chapter 14 Form worksheetisto be use&to createyourowmworksheetversionof ExampleEand Exhibit 14-8 in the The company is considering a projectinvoivingthe purchaseofnew equipment Change the data area ofyourworksheetto matcW the foilowingz use Exhibit 4-48-1 and Exhibit 148-2 Nate: use appropriate factor(s) from the tables provided. Chapter 14: Apptying Excel y 3 Data Exampie E S Cost of equioment needed 6 working capitai needed 7 Overhal-A of equipment in four years 8 Salvage vaiue of the equipmentin five years 9 Annual revenues and costs: 210.000 20.000 20.000 20.000 i 395.000 i 255.000 a. Whatis thenetpresentvaiueofthe project? Nate: Negative amountshouid be indicated by a minus sigm Round your present vaiuefactartm3 decimaieanerouneail athw i nearestwhoie doilar= The internal rate of return is between whattwo whoiediscountrates(e-g, betweem10% and 11%, between 11% and 12%; between 12% and 139Q benneen13% and 14%, etc)? einternai-ratairetumis.betverv d- Reset the discount rate to 12%. Suppose the salvage value is uncertajm How largewould the salvage value haveto be to result in a positive net present value? : Minimurn saivage vaiue required to generate.posivepresentvaiue 12 S aSes revenues Cost of goods sold Out-of-oocxet ooeratmg costs Ciscount rate Periods 1 3 6 s 9 10 11 12 13 14 16 19 23 30 0962 0 676 0 625 1346 1 &907 0 864 OASI 0416 0 396 0359 0890 0840 0.792 0627 0497 0.469 0 _ 442 0417 0+94 0312 0294 0 278 0 326 0310 0 29i 0 281 0 268 0 262 0 247 O_2G3 0873 0 666 0623 ossz 0544 o sos 0.475 0415 o sss 0362 0317 0296 0277 0242 0 226 0211 0 197 rns4 0 220 0 207 0196 0 1-4 0926 0394 0630 0540 o soo 0 463 0 429 0 397 0340 0315 0292 0 270 0250 0 232 0 215 0199 0 099 0917 0842 0772 ons 0650 0502 0 422 0356 0326 0299 0275 0252 0231 0212 o A94 o A 78 o A64 0 150 0 126 o A16 0106 0 098 0090 0909 0826 onsl 0621 0564 0513 467 0386 0319 0290 0263 0239 0218 0 198 0.180 o A64 0135 023 0 112 0.102 0 092 0084 0 076 0069 D 063 C) 022 0901 0812 0331 0659 o '93 0482 0.434 0391 0352 0317 0286 0258 0232 0209 0170 o. 138 0112 o AOI 0 091 0 0S2 0.074 0066 0 060 0 015 0893 0797 0712 0636 0567 0507 0452 0404 0361 0322 0287 0257 0229 0205 0183 o_ 163 o A 46 o A16 0093 0083 0 074 0066 0047 0 042 0 033 0 011 0833 0 694 0579 0482 0402 0.335 0279 0 233 004 0.112 0093 0078 0065 0054 0 045 0038 0031 0026 0826 0683 0564 0467 0 386 0319 0263 0218 o A49 0084 22% 0820 0672 0551 0451 0370 0303 0249 0204 o. 137 o. 112 0.092 0 075 0062 0 051 0042 0028 0 023 23% 0813 0661 OST 0.437 0355 0289 0235 o 03 0068 0055 0045 0036 0030 0.024 0020 0016 0806 0650 0524 0423 0341 0.275 0.222 o A79 C) 8$4 o. 116 0094 0T6 0061 0049 0040 0032 0026 0021 0017 0014 540FSunnyr 0069 0.057 0.047 0039 0032 0027 0.022 0800 0640 0512 0410 0328 0262 0210 0134 0086 0069 0055 C) 044 0035 0028 O_023 0014 0_012 EXHIHITUW-& 1 3 6 s 9 10 11 13 15 16 19 22 24 26 29 30 1_SS6 3 _ 630 6002 9986 1162 12166 12659 14029 622 983 16 16663 16 l_ssg 3 S 46 4329 5_076 6463 s_306 9 899 10380 10838 12_460 12821 13 489 799 094 14 898 0943 673 3465 6210 6_S02 9295 9712 10.106 10477 11.158 11470 11364 12.042 12 13211 13 406 o_93S I-sos 2.624 3387 4_100 767 6_svs 7024 7_499 7943 9108 9363 10059 10336 10 594 10 836 11061 11469 11654 11 S26 11987 12 12 1 0926 1.783 3_312 3.993 4623 5206 S. 747 6247 6_710 T 139 7 904 S 244 8559 9604 9 818 10017 10201 10529 10675 10810 1 9% 0917 3240 3890 4.486 5033 5995 6418 7161 7487 7786 8_061 8950 9 129 9292 9442 9.580 9823 9 929 10.027 10 M6 0_909 L 736 2487 3791 4_355 4.868 5 335 s 759 6495 6814 7103 7606 7824 8022 8201 s 365 8_649 s 883 s 985 9 077 9161 0_901 1.713 2444 3696 4231 v712 5.146 5.537 5889 6207 6492 6_750 6982 7191 739 7549 7302 7839 7963 8075 8.266 8.348 s 422 s 4S8 S602 s 694 0893 1.690 2.402 3037 3.605 4.968 5.938 6.194 6.424 6628 6.811 6.974 7.120 7250 7 _ 469 7562 7718 7384 7 843 896 943 984 s 022 8.244 0783 0693 0613 0543 0480 0425 0376 0295 0261 0231 0204 o ASI o A25 o All 0098 0 087 0 077 0.060 0047 0042 0 033 0 029 0 026 0 008 1668 2361 2_974 3517 3.998 4423 4 _ 799 s 132 5426 5687 5918 622 6302 6462 6604 6729 6938 7 025 7230 7_2S3 730 7372 409 496 634 s s s s s s OUT 0769 0675 0592 0519 0456 0400 0351 o sos 0270 0.237 0208 o A82 o A60 0140 0_123 0083 0 064 0056 0049 0043 0.033 0029 0.026 0022 0 005 O.S7T 1.647 2322 2914 3433 4288 4.639 4.946 3216 5453 5660 5.842 6.002 6.142 6265 6373 6467 6623 6687 6.743 6.792 6835 6873 6906 6935 6961 6983 7 003 0870 0.658 0497 0432 0376 0327 0284 0.247 0215 0.187 0.163 o. 141 o A23 0093 0 081 0070 0061 0053 0 040 0 035 0030 0 026 0023 0 020 o sov 0004 0870 L626 2283 3.352 160 4.487 772 5019 5421 5583 5724 5847 6 047 6.128 6198 6.259 6359 6*99 6 434 6491 6514 6.566 6.642 0862 0743 0.552 0476 0410 0305 0263 0227 o A68 o A45 o A08 0093 0080 0069 0.051 0.044 0028 0024 0021 DUIS D 016 0 014 0012 0 003 0862 1.605 2246 2.798 3.274 3 685 4039 4 _ 607 4.833 5.029 5+7 5468 5668 5749 5877 5929 -s 973 6011 6044 6073 6097 6.136 6.152 6.166 c 0731 0624 0534 0456 0390 0333 0285 0243 0208 0.152 0095 0069 0059 0051 0043 0032 0.027 0.023 0.020 D 017 0014 0012 0009 o_gss IS8S 2210 2.743 3589 3922 4 207 4.451 4_659 4836 5.229 s 324 5_405 475 5584 5628 5.665 5366 0.847 0718 0609 0516 0.437 0370 0314 0266 0225 M62 o 37 o A16 0099 0084 0071 0060 0051 0043 0037 0 026 0 022 0019 0 016 0014 0.011 0010 o oos 0 007 0001 0847 IL 566 2174 2690 3.127 3498 3812 4.078 4303 4656 4 _ 793 4.910 5.008 5092 -s 462 5273 5316 5_353 _ 432 5467 5 480 5 _ 492 5 slo 0840 o_ 706 0393 0499 0419 0352 0 296 (Y249 0209 0176 o A48 0.124 o A04 0 088 0.074 0 062 0.052 0044 0037 0031 0026 O_ 022 0009 o oos DSJ06 0 001 0840 1.547 2.140 2.639 3410 3.706 3954 4.163 V 339 4.486 4.715 4.802 4876 4_938 4.990 -.033 5.167 5.182 -S.19S 206 0_022 0013 00.10 0009 0 007 0 006 D TJ04 0.001 0.833 L52S 2.106 2589 2991 3326 3837 4.031 192 4327 4_439 -v 533 4.611 4.675 730 4.775 4.843 870 4.891 4909 4.925 4 937 4_9i6 4.964 4970 975 979 4 997 0.018 ODIO 0009 0 007 0006 0000 0826 1509 2540 2.926 3245 3.726 3905 4.054 4_ 177 278 4G62 4.432 4 489 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