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.) A B 1 Chapter 12: Applying Excel 2 3 Data 4 5 Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years $ $ 6 250,000 45,000 15,000 40,000 7 $ 8 $ 9 Annual revenues and costs: 10 Sales revenues 11 Cost of goods sold Out-of-pocket operating costs AA 370,000 245,000 65,000 11 % 12 13 Discount rate 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 $ 295,000 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 % and % 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 salvage value required to generate a positive net present value