Question
The following data are accumulated by Geddes Company in evaluating the purchase of $160,000 of equipment, having a four-year useful life: Net Income Net Cash
The following data are accumulated by Geddes Company in evaluating the purchase of $160,000 of equipment, having a four-year useful life:
| Net Income | Net Cash Flow | |||
| Year 1 | $48,500 | $88,500 | ||
| Year 2 | 24,000 | 64,000 | ||
| Year 3 | 12,500 | 52,500 | ||
| Year 4 | 7,000 | 47,000 | ||
Assuming that the desired rate of return is 20%, determine the net present value for the proposal. If required, round to the nearest dollar.
| Net present value |
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Managerial Accounting Special Edition For California State University Los Angeles
Authors: Garrison
14th Edition
0077519973, 978-0077519971
