Show Me How Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $103,100 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $31,000 $52,000 Year 2 19,000 40,000 Year 3 9,000 30,000 Year 4 (1,000) 20,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.797 0.694 0.890 0.840 0.756 0.658 3 0.579 0.826 0.751 0.663 0.621 0.712 0.636 4 0.792 0.747 5 0.567 0.482 0.402 0.335 5 0.564 0.507 0.572 0.497 0.432 0.375 0.327 0.705 0.665 7 0.452 0.279 8 0.627 0.513 0.467 0.424 0.404 0.233 9 0.592 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Previous NE Check My Work 2 more Check My Work uses coming Year 1 2 9 4 Present Value of 81 at Compound Interest 69 10% 12 15 204 0.943 0.909 0.893 0.870 0.833 0.890 0826 0.797 0.756 0.694 0.140 0.751 0.712 0.658 0.579 0.792 0.653 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 0.558 0.356 0.322 0.247 0.162 5 6 7 9 10 a. Assuming that the desired rate of return is 6%, determine theniet present value for the proposal. Use the table of the present value of $presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value Present value of net cash flow Amount to be invested Net present value b. Would management be likely to look with favor on the proposal? because the net present value indicates that the retum on the proposalis than the minimum desired rate of return of 6%