Question
Just need help answering part c.
The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: What is the net present value of the project? (Negative amount should be indicated by a minus sign. Calculate the discount factor(s) using formula and do not round the discount factor(s). Round all other intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Net present value The internal rate of return is between what two whole discount rates (e, g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? (Omit the "%" sign in your response.) The internal rate of return is between Reset the discount rate to 12%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive present value? (Round final answer to the closest thousand. Omit the "$" sign in your response.) Minimum salvage value required to generate a positive present value
Explanation / Answer
a) -44,000
b) between 10% and 11 %
