The following data are accumulated by Geddes Company in evaluating the purchase of $160,000 of equipment, having a four-year useful life: Open spreadsheet a. Assuming that the desired rate of return is 10%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $209,692. X b. Would management be likely to look with favor on the proposal? Yes Feedback Year 1 , the net present value indicates that the return on the proposal is greater Year 2 Year 3 Year 4 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Net Income than the minimum desired rate of return of 10%. $47,000 29,000 16,500 5,500 Net Cash Fl $87,000 69,000 56,500 45,500 X Open spreadsheet a. Assuming that the desired rate of return is 10%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value b. Would management be likely to look with favor on the proposal? Yes Feedback 209,692. X , the net present value indicates that the return on the proposal is greater your answers in the questions below. than the minimum desired rate of return of 10%. Check My Work a. The net present value method compares the amount to be invested with the present value of the net cash inflows. b. If the present value of the cash inflows equals or exceeds the amount to be invested, the proposal desireable.