Annual Revenues and Costs Assignment | Top Universities
Required information The Chapter 13 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 13-8 in the text 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 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) A B C Chapter
13: Applying Excel 1 2 Data Example E Cost of equipment needed $ 350,000 Working capital needed 50,000 Overhaul of equipment in four years 30,000 Salvage value the equipment in five years 35,000 Annual revenues and costs: Sales revenues 435,000 10 Cost of goods sold 260,000 11 Out-of-pocket operating costs 12 65,000 16% Discount rate 13 Required information 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 the nearest whole dollar.) Net present value 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 16%. 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. Get Accounting Homework Help Today.