Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $190,900 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $44,000 $75,000 Year 2 Year 3 Year 4 27,000 58,000 13,000 44,000 (1,000) 29,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 Year 1 2 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.402 0.497 0.432 6 0.705 0.561 0.507 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 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 10%, 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. Present value of net cash flow $ Amount to be invested 190,900 Net present value $ b. Would management be likely to look with favor on the proposal? No, because the net present value indicates that the return on the proposal is less than the minimum desired rate of return of 10%. . Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $64 Factory overhead $201,700 Direct labor 40 Selling and administrative expenses 71,700 Factory overhead 26 Selling and administrative expenses 19 Total variable cost per unit $149 Voice Com desires a profit equal to a 16% rate of return on invested assets of $600,600. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. b. Determine the product cost per unit for the production of 4,950 of cell phones. Round your answer to the nearest whole dollar. $ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per unit Selling price per unit