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Net Present Value Method The following data are accurmilated by Geddes Company in evaluating the purchase of 3130,100 of equipment, having a four-year useful nfe:

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Net Present Value Method The following data are accurmilated by Geddes Company in evaluating the purchase of 3130,100 of equipment, having a four-year useful nfe: Present Value of 51 at Comaound Interest. A. Rssuming that the desires rate of return is 12\%, determine the net present value for the propesal, use the tabie of the present value of st presented above, if required, reund to the nearest dellar. Present Value of s1 at Comnound Internst a. Assuming that the desired rate of return is 12%, determine the net present value for the propesal, Use the table of the present value of st prestented above. If required, round to the nearest dollar. b. Would management be likely to look with favor on the proposal? 1. because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 12%

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