eBook Show Me How The following data are accumulated by Paxton Company in evaluating the purchase of $150,000 of equipment having a four-year useful Me Net Income Year 1 Year 2 Year 3 Year 41 Net Cash Flow $42,500 $80,000 27,500 65,000 12,500 50,000 2,500 40,000 Present Value of $1 at Compound Interest Year 6% 10% 1296 15% 20% 1 0.943 0.909 0.003 0.870 0,033 2 0.890 0.826 0.707 0.756 0.604 0.840 0.751 0.712 0.658 0.570 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0,432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0,404 0.327 0.233 0.592 0.424 0.361 0.204 0.194 10 0.558 0.356 0.322 0.247 0.162 a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. (If required, round to the nearest dollsc) Use the table of the present value of $1 presented above. 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 The net present value indicates that the return on the proposal is than the minimum desired cate of return of 15% Check My Work All work saved