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Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $184,600 of equipment, having a four-year useful life:
Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $184,600 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $42,000 $71,000 Year 2 26,000 55,000 Year 3 12,000 41,000 Year 4 (1,000) 28,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162
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