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Net Presert Value Method The following data'are sceumulsted by Waiola Compony in evalaating the purchase of 5150,000 of equipment, having a 4-year useful ife: This

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Net Presert Value Method The following data'are sceumulsted by Waiola Compony in evalaating the purchase of 5150,000 of equipment, having a 4-year useful ife: This information thas been collected in the Microsof Excel Online fle. Open the spreadsheet, perform the required analysis, and input vour answers in the quentions below. Open epreadshet a. Ascuming that the desued rate of retum is 20%, deterinine the net present value for the proposal. If required, round to the nearest dollar. Net present value 1x b. Woud mansgemient be likety to look with favor on the propoca? , because the net present value indicates that the metum on the proposal is than the minimum desired rate of return of 20N fakeich *ches mi, wor a. The net present value method compares the amount to be imveited with the precent value of the net cas infioms: b. If the present value of the cash infons equals of exceeds the amount to be invested, the propossl is desireable. Net Prosent Value Method The following data are accumulated by Waiola Company in evaluating the purchase of 5150,000 of equlpment, having a 4 -year useful life: This informatien has been collected in the Microsoft Excel Online fie. Open the spreadsheet, perform the required analysis, and ingut your answers in the questions belom Open spreadsheet a. Assuming thut the desired rate of retum is 20%, determine the net present value for the proposal, if required, round to the nearest dollar. Net present value : b. Would mansgement be likely to look wah favor on the propoial? , because the net present value indicates that the refurh on the proposal is than the minimum desired rate of return of 20%

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