2. The company is considering a project involving the purchase of hew equi he following: Use Exhibit 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the B 1 Chapter 14: Applying Excel 2 3. Data Example E 310,000 Cost of equipment needed Working capital needed Overhaul of equipment in four years 5. 6. %24 20,000 %24 30,000 7. 35,000 Salvage value of the equipment in five years 9. Annual revenues and costs 415.000 10 Sales revenues 270,000 11 Cost of goods sold 55,000 12 Out-of-pocket operating costs 16 % 13 Discount rate a What is the net present value of the project? (Negative amount should be indicat Factor to 3 decimals and round all other intermediate calculations to nearest whol Net present value %24
2. The company is considering a project involving the purchase of hew equi he following: Use Exhibit 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the B 1 Chapter 14: Applying Excel 2 3. Data Example E 310,000 Cost of equipment needed Working capital needed Overhaul of equipment in four years 5. 6. %24 20,000 %24 30,000 7. 35,000 Salvage value of the equipment in five years 9. Annual revenues and costs 415.000 10 Sales revenues 270,000 11 Cost of goods sold 55,000 12 Out-of-pocket operating costs 16 % 13 Discount rate a What is the net present value of the project? (Negative amount should be indicat Factor to 3 decimals and round all other intermediate calculations to nearest whol Net present value %24
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image 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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.)
A
Chapter 14: Applying Excel
3.
Data
4.
Example E
5.
Cost of equipment needed
310,000
6.
Working capital needed
20,000
7.
Overhaul of equipment in four years
2$
30,000
8.
Salvage value of the equipment in five years
35,000
9.
Annual revenues and costs:
415.000
10
Sales revenues
270,000
11
Cost of goods sold
%24
55,000
12
Out-of-pocket operating costs
16 %
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
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