1 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to matchthe following: Use Exhibit 14B-1 and Exhibit 14B-2. (Use appropriate factor(s) from the tables provided.)ABChapter 14: Applying Excel23Data4 Example ECost of equipment needed6 Working capital needed$260,000$35,0007Overhaul of equipment in four years$25,0008Salvage value of the equipment in five years$25,0009Annual revenues and costs:10Sales revenues2$380,00011Cost of goods sold215,00012Out-of-pocket operating costs$90,00013 Discount rate15 %a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present valuefactor to 3 decimals and round all othercalculations tolar.)Net present value(23,076) X

Net Present Value Net present value is a capital budgeting technique used to evaluate various…

Answered: a. What is the net present value of the…

a. What is the net present value of the project? (Negative amount should be indi factor to 3 decimals and round all other intermediate calculations to nearest w Net present value (23,076) O

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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