Net Present Value Method The following data are accumulated by Wocester Hat Company in evaluating the purchase of $139,500 of equipment, having a four-year useful life: Year 1 Year 2 Year 3 Year 4 Net Income (Loss) $39,000 24,000 11,000 (1,000) Net Cash Flows $66,000 51,000 38,000 26,000 Present Value of $1 at Compound Interest 1096 0.909 0.890 0.826 2096 0.833 0.694 0.579 0.482 0.402 0.335 0.279 Year 1296 0.893 0.797 15% 0.870 0.756 0.840 0.751 0.7120.658 0.792 0.683 0.636 0.572 0.497 0.705 0.564 0.5070.432 0.376 6% 0.943 0.747 0.621 0.567 0.665 0.513 0.452