I just need the formula for the question marks note that everything has to be in
ID: 2795060 • Letter: I
Question
I just need the formula for the question marks note that everything has to be in formula.
For example, in cell C22 enter the formula "= B10".
Note: The present value factors could be computed using the built-in Excel function PV, but we recommend using the formulas in Appendix 13B.
Verify that your worksheet matches the example in the text.
Check your worksheet by changing the discount rate to 10%. The net present value should now be between $56,518 and $56,535—depending on the precision of the calculations. If you do not get an answer in this range, find the errors in your worksheet and correct them.
http://www.chegg.com/homework-help/Managerial-Accounting-15th-edition-chapter-13-problem-1AE-solution-9780077522957
Here is the excel!
Chapter 13: Applying Excel 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 five years $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 of the 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 years and r is the discount rateExplanation / Answer
Please provide feedback... Thanks in advance
If you want to use discount rate cell in dicount factors row you can but in that case u have to right the formula 5 times for each colum.
B C D E F G H 2 Chapter 13: Applying Excel 3 4 Data 5 Example E 6 Cost of equipment needed 60,000 7 Working capital needed 1,00,000 8 Overhaul of equipment in four years 5,000 9 Salvage value of the equipment in five years 10,000 10 Annual revenues and costs: 11 Sales revenues 2,00,000 12 Cost of goods sold 1,25,000 13 Out-of-pocket operating costs 35,000 14 Discount rate 14% 15 16 Enter a formula into each of the cells marked with a ? below 17 Exhibit 13-8 18 Years 19 Now 1 2 3 4 5 20 Purchase of equipment =C6 21 Investment in working capital =C7 22 Sales =C11 =C11 =C11 =C11 =C11 23 Cost of goods sold =C12 =C12 =C12 =C12 =C12 24 Out-of-pocket operating costs =C13 =C13 =C13 =C13 =C13 25 Overhaul of equipment =C8 26 Salvage value of the equipment =C9 27 Working capital released =C7 28 Total cash flows (a) =C20+C21 =D22-D23-D24 =E22-E23-E24 =F22-F23-F24 =G22-G23-G24-G25 =H22-H23-H24+H26+H27 29 Discount factor (14%) (b) 1 =1/1.14^D19 =1/1.14^E19 =1/1.14^F19 =1/1.14^G19 =1/1.14^H19 30 Present value of cash flows (a) x (b) =C29*C28 =D29*D28 =E29*E28 =F29*F28 =G29*G28 =H29*H28 31 Net present value =SUM(D30:H30)-C30 32 33