. Net Present Value Method The following data are accumulated by Geddes Company Invating the purchase of $150,000 of equipment, having a four-year user Net Income Net Cash Flow Year: 542,500 $80,000 Year 2 27.500 65.000 Year) 12.500 50,000 2.500 Year 4 40.000 Year 1 2 3 4 Present Value of $1 at Compound Interest 6% 10% 1296 15% 20% 0.94 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.753 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.62% 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.24 0.194 0.550 0.322 0247 0.163 5 6 7 3 10 a. Assuming that the desired rate of retum is 15 determine the represent value for the proposal. If required, round to the nearest dollar. Use the table of the present value of rested above Year 1 3 Present Value of $1 at Compound Interest 104 124 15% 204 0.943 0.909 0.893 0.870 0.833 0.590 0.694 0.840 0.751 0.712 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.402 0.705 0.564 0.507 0.335 0.665 0.53 0:452 0.376 0.279 0.627 0.404 0.327 0.233 0.592 0.424 0.363 0.254 0.194 0.550 0.386 0.322 0.247 0.162 5 6 7 B 9 30 *. Assuming that the desired rate of return is 15%, determine the net present value for the proposal, Et required, round to the nearest dollar. Use the table of the present value of ! presented above Present value of net cash flow Amount to be muested hat present value . Would management be likely to look with favor on the proposal because the net present value indicates that the return on the proposals than the minimum desired rate of return of 15%