Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $109,800 of equipment, having a four-year useful life: Net Income Year 1 Year 2 Year 3 Year 4 $28,000 17,000 8,000 (1,000) Net Cash Flow $48,000 37,000 28,000 19,000 Present Value of $1 at Compound Interest 696 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 Year 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 2 4 8 10