Question

Chapter 13: Applying Excel: Excel Worksheet (Part 1 of 2)

Download the Applying Excel form and enter formulas inall cells that contain question marks.

For example, in cell C22 enter the formula "= B10".

Note: The present value factors could be computed using thebuilt-in Excel function PV, but we recommend using the formulas inAppendix 13B.

Verify that your worksheet matches the example in the text.

Check your worksheet by changing the discount rate to 10%. Thenet present value should now be between $56,518 and$56,535—depending on the precision of the calculations. If you donot get an answer in this range, find the errors in your worksheetand correct them.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determinethe appropriate discount factor(s) using tables.

Save your completed Applying Excel form to your computerand then upload it here by clicking “Browse.” Next, click “Save.”You will use this worksheet to answer the questions in Part2. rev: 11_08_2017_QC_CS-108759

Chapter 13: ApplyingExcel
Data
Example E
Cost of equipment needed	$60,000
Working capital needed	$100,000
Overhaul of equipment in four years	$5,000
Salvage value of the equipment in fiveyears	$10,000
Annual revenues and costs:
Sales revenues	$200,000
Cost of goods sold	$125,000
Out-of-pocket operating costs	$35,000
Discount rate	14%
Enter a formula into each ofthe cells marked with a ? below
Exhibit 13-8
		Years
	Now	1	2	3	4	5
Purchase of equipment	?
Investment in working capital	?
Sales		?	?	?	?	?
Cost of goods sold		?	?	?	?	?
Out-of-pocket operating costs		?	?	?	?	?
Overhaul of equipment					?
Salvage value of the equipment						?
Working capital released						?
Total cash flows (a)	?	?	?	?	?	?
Discount factor (14%) (b)	?	?	?	?	?	?
Present value of cash flows (a) x (b)	?	?	?	?	?	?
Net present value	?
*Use the formulas from Appendix 13B:
Present value of $1 = 1/(1+r)^n
Present value of an annuity of$1 = (1/r)*(1-(1/(1+r)^n))
where n is the number of yearsand r is the discount rate

CAN YOU PLEASE DO ON EXCEL SPREAD SHEET & PUT FORMULAS?