Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $136,300 of equipment, having a 4-year useful life: 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 $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative 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 o 12%