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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 14B-1 and Exhibit 14B-2. (Use appropriate factor(s) from the tables provided.) A B Chapter 14: Applying Excel 2 3 Data 4 Example E Cost of equipment needed 6 Working capital needed $ 260,000 $ 35,000 7 Overhaul of equipment in four years $ 25,000 8 Salvage value of the equipment in five years $ 25,000 9 Annual revenues and costs: 10 Sales revenues 2$ 380,000 11 Cost of goods sold 215,000 12 Out-of-pocket operating costs $ 90,000 13 Discount rate 15 % 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 calculations to lar.) Net present value (23,076) X
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 14B-1 and Exhibit 14B-2. (Use appropriate factor(s) from the tables provided.) A B Chapter 14: Applying Excel 2 3 Data 4 Example E Cost of equipment needed 6 Working capital needed $ 260,000 $ 35,000 7 Overhaul of equipment in four years $ 25,000 8 Salvage value of the equipment in five years $ 25,000 9 Annual revenues and costs: 10 Sales revenues 2$ 380,000 11 Cost of goods sold 215,000 12 Out-of-pocket operating costs $ 90,000 13 Discount rate 15 % 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 calculations to lar.) Net present value (23,076) X
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