eBook Show Me How Calculator Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $139,900 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 $30,000 $51,000 18,000 39,000 9,000 30,000 (1,000) 20,000 Present Value of $1 at Compound Interest 5% 10% 12% 15% 20% Year 4 Year 1 0.943 0 .909 2 0.833 0.694 0.579 0.482 3 0 0.402 0.890 .840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.870 0.756 0.658 0.572 0.497 0.432 0.375 0.327 0.284 0.247 0.335 0.279 0.233 0.194 0.162 10 a. Assuming that the desired rate of return is 6%, 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 Present value of net cash flow Amount to be invested Check My Work 1 more Check My Work uses remaining Previous Next > All work saved Email Instructor Save and Exit Submit Assignment for Grading eBook Show Me How Calculator Year 2 Year 3 Year 4 18,000 39,000 9,000 30,000 20,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% (1,000) Year 0.943 0.909 0.893 0. 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.579 0.792 0.747 0.683 0.621 0.564 0.636 0.567 0.705 0.507 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.482 0.402 0.335 0.279 80.233 0.194 0.565 0.513 0.452 0.404 0.627 0.592 0.558 0.467 0.424 0.386 0.361 0.322 10 0.162 a. Assuming that the desired rate of return is 6%, 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 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 6%. Check My Work 1 more Check My Work uses remaining Previous Next > All work saved Email Instructor Save and Est Submit Assignment for Grading