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 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.)AChapter 14: Applying Excel3.Data4.Example E5.Cost of equipment needed310,0006.Working capital needed20,0007.Overhaul of equipment in four years2$30,0008.Salvage value of the equipment in five years35,0009.Annual revenues and costs:415.00010Sales revenues270,00011Cost of goods sold%2455,00012Out-of-pocket operating costs16 %13 Discount ratea. 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 other intermediate calculations to nearest whole dollar.)Net present value

Net present value (NPV) It is a capital budgeting tool to decide on whether the capital budget…

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

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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