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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) 1. Chapter 14: Applying Excel 3. Data Example E Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five yoars 9 Annual revenoes and costs: 4. 320,000 50,000 20,000 %24 8. 25,000 10 Sales revenues %24 376.000 11 Cost of goods sold %24 230,000 60,000 10 % 12 Out-of-pocket operating costs 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.)

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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) 1. Chapter 14: Applying Excel 3. Data Example E Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five yoars 9 Annual revenoes and costs: 4. 320,000 50,000 20,000 %24 8. 25,000 10 Sales revenues %24 376.000 11 Cost of goods sold %24 230,000 60,000 10 % 12 Out-of-pocket operating costs 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.)

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 5R

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