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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:
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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
- 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
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 |
- 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
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