Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $130,400 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 $31,000 $53,000 19,000 41,000 9,000 31,000 (1,000) 21,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% Year 4 Year 1 0.943 0.909 0.893 0.870 0.833 0.694 0.890 0.826 0.797 0.756 wN 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 0.402 5 0.747 0.621 0.567 0.497 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 0.361 0.284 0.194 0.592 0.558 0.424 0.386 10 0.322 0.247 0.162 1. Assuming that the desired rate of return is 12%, determine the net presentar for the proposal. Use the table of the present value of si presented above. If required, round to the nearest dollar, it required, use the mission to indicate negativne present value Presentate of net cash flow Amount to be invested Net present value b. Would management by to look with favor on the prop Incoming Co The newesent value indicates that there on the propata than the minimum desired rate of rum of 124