1. Net present value method

   The following data are accumulated by Geddes Company in evaluating the purchase of $140,000 of equipment, having a four-year useful life:

   	Net Income		Net Cash Flow
   Year 1	$44,000		$79,000
   Year 2	22,500		57,500
   Year 3	14,500		49,500
   Year 4	7,000		42,000

   1. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar.

      Net present value

      $fill in the blank 2