a$.$ Assuming that the desired rate of return is $12\%,$ determine the net present value for the proposal. Use the table of the present value of $$1$

presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.

Present value of net cash flow

$

Amount to be invested

Net present value

b$.$ Would management be likely to look with favor on the proposal?

$,$ because the net present value indicates that the return on the proposal is

than the minimum

desired rate of return of $12\%.$