Net Present Value Method The following data are accumulated by Geddes Company.r in evaluating the purchase of $140,100 of equipment, having a fouryear useful life: Net Income Net Cash Fbw Year 1 $32,000 $54,000 Year 2 20,000 42,000 Year 3 9,000 31,000 Year 4 (1,000) 21,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.900 0.893 0.8?0 0.833 2 0.890 0.826 0.?97 0.?56 0.694 3 0.840 0.?51 0.?12 0.653 0.529 4 0.?92 0.633 0.636 0.5?2 0.432 5 0.?4? 0.621 0.567 0.497 0.402 6 0.?05 0.564 0.50? 0.432 0.335 7 0.665 0.513 0.452 0.3?6 0.279 8 0.62? 0.46? 0.404 0.327 0.233 9 0.592 0.424 0.361 0.234 0.194 10 0.558 0.336 0.322 0.247 0.162 a. Assuming that the desired rate of return is 6%, 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. Present value of net cash ow $S Amount to be invested $S Net present value $E h. Would management be likely to look with favor on the proposal? v , because the net present value indicates that the return on the proposal is V than the minimum desired rate of return of 6%