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Net Present Value Method The followng data-are accumulated by Geddes Comparty in evaluoting the parchase of $150,000 of equipment, having a four-year useful life: Present

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Net Present Value Method The followng data-are accumulated by Geddes Comparty in evaluoting the parchase of $150,000 of equipment, having a four-year useful life: Present Value of $1 at Comnound rovorae. a. Assuming that the desired rate of retum is 15%, determine the net present vilue for the proposal. If required, round to the nearest dollar. Use the table of the present value of 51 presented above. b. Would management be hikety ro look with favot on the proposal? becaise the fiet peesent value indicates that the retisen on the proposat is than the manimum desired rate of refian of 15%

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