Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $171,700 of equipment, having a four-year useful life: Net Cash Flow $70,000 54,000 41,000 27,000 Net Income Year 1 Year 2 Year 3 Year 4 $41,000 25,000 12,000 (1,000) Present Value of $1 at Compound Interest 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 Year 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 1590 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 2 4 6 7 8