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Net Present Value Method The following data are accumulated by Lingle Company in evaluating the purchase of $158,300 of equipment, having a 4-year useful life:
Net Present Value Method The following data are accumulated by Lingle Company in evaluating the purchase of \$158,300 of equipment, having a 4-year useful life: Present Value of $1 at Compound Interest a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. Use the table of the present value of $1 negative net present value. b. Would management be likely to look with favor on the proposal? The net present value indicates that the return on the proposal is than the minimum desired rate of return of 20%
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