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Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $112,400 of equipment, having a four-year useful

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Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $112,400 of equipment, having a four-year useful life: Year 1 Year 2 Year 3 Year 4 Net Income $30,000 18,000 9,000 Net Cash Flow $51,000 39,000 30,000 20,000 (1,000) Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4. 0.792 0.683 0.636 0.572 0.482 S 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 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284. 0.194 10 0.550 0.386 0.322 0.247 0.162

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