Question
The following data are accumulated by Geddes Company in evaluating the purchase of $140,000 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 $140,000 of equipment, having a four-year useful life:
| Net Income | Net Cash Flow | |||
| Year 1 | $42,000 | $77,000 | ||
| Year 2 | 26,500 | 61,500 | ||
| Year 3 | 13,000 | 48,000 | ||
| Year 4 | 4,000 | 39,000 | ||
Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar.
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Managerial Accounting
Authors: John Wild, Ken Shaw
6th Edition
9781259726972
