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Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of equipment, having a four-year useful
Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of equipment, having a four-year useful life: Net Cash Flow Net Income Year 1 $40,500 Year 2 27,000 Year 3 Year 4 16,500 2,000 $70,500 57,000 46,500 32,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value
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