Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $123,500 of equipment, having a four-year useful life: Present Value of $1 at Compound Interest a. Assuming that the desired rate of return is 12%, 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. If required, use the minus sign to indicate a negative net present value. b. Would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 12%