Net present value method

The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of equipment, having a four-year useful life:

	Net Income		Net Cash Flow
Year 1	$42,000		$72,000
Year 2	23,000		53,000
Year 3	14,000		44,000
Year 4	5,000		35,000

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. If required, round to the nearest dollar.

   Net present value

   $fill in the blank 2