2. The company is considering a project involving the purchase of new equipment. Change the data...
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 13B-1 and Exhibit 13B-2. (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel Data 4 $ 5 6 7 $ 340,000 20,000 40,000 25,000 $ $ Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues...
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 13B-1 and Exhibit 13B-2 (Use appropriate factor(s) from the tables provided.) 1 Chapter 13: Applying Excel 3 Data 250.000 55.000 30.000 20.000 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years B Salvage value of the equipment in five years 9 Annual revenues and costs...
The company is considering a project involving a purchase of new equipment. Change the data area of your worksheet to match the following: Cost of new equipment needed: $370,000 Working capital needed: $45,000 Overhaul of equipment in four years: $30,000 Salvage value of equipment in five years: $25,000 Annual revenues and costs: Sales revenues: $430,000 Cost of goods sold: $250,000 Out-of-pocket operating costs: $70,000 Discount rate: 15% 1. What is the net present value of the project? 2. The internal...
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.)
c. The internal rate of return is between what two whole
discount rates (e.g., between 10% and 11%, between 11% and 12%,
between 12% and 13%, between 13% and 14%, etc.)?
d. Reset the discount rate to 13%. Suppose the salvage value is...
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.)
c. The internal rate of return is between what two whole
discount rates (e.g., between 10% and 11%, between 11% and 12%,
between 12% and 13%, between 13% and 14%, etc.)?
d. Reset the discount rate to 14%. Suppose the salvage value is...
part 1
part 2
Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five years Annual revenues and costs: Sales Cost of goods sold Out-of-pocket operating costs Discount rate $60,000 $100.000 $5,000 $10,000 $200,000 $125,000 $35,000 14% Enter a forma into each of the cells marked with a ? Below Exhibit 13-8 Years 13 14 Now (60,000) (100,000) Purchase of equipment Investment in working capital Sales Cost...
NEED HELP! Chapter 13: Applying Excel Data Example E Cost of equipment needed $280,000 Working capital needed $60,000 Overhaul of equipment in four years $30,000 Salvage value of the equipment in five years $25,000 Annual revenues and costs: Sales revenues $395,000 Cost of goods sold $235,000 Out-of-pocket operating costs $75,000 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...
Cardinal Company is considering a five-year project that would require a $2,500,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $2,853,000 1,200,000 1,653,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 790,000 500,000 1,290,000 $ 363,000 51363,000 Click here to...
Cardinal Company is considering a five-year project that would require a $2,805,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $2,741,000 1,125,000 1,616,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $642,000 561,000 1,203,000 $ 413,000 Click here to view Exhibit...
Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $ 2,746, eee 1,126, eee 1,620,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 615, eee 583,000 1,198,000 422,000 Click...