2 3 Data 4 Example E 5 Cost of equipment needed 6 Working capital needed...

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Accounting

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2 3 Data 4 Example E 5 Cost of equipment needed 6 Working capital needed 7 Overhaul of equipment in four years 8 Salvage value of the equipment in five years 9 Annual revenues and costs: 10 Sales revenues 11 Cost of goods sold 12 Out-of-pocket operating costs 13 Discount rate 5 $ $ $ 490,000 60,000 60,000 30,000 $ $ s 440,000 230,000 60.000 13% 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.) The internal rate of return is between what two whole discount rates (eg, between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? The Internal rate of return is between and % d. Reset the discount rate to 13%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage value required to generate a positive present value

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