Net Present Value Method The following data are accumulated by Geddes company in evaluating the purchase of $150,000 of equipment, having a four-year useful life Present value of $1 at Compound Interest a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar. Use the table of the present value of $1 presented above. 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