A

Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $129,500 of equipment, having a four-year useful life: Present Value of $1 at Combound Interest 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 $ presented ab 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%