The following data are accumulated by Geddes Company in evaluating the purchase of $130,000 of equipment, having a four-year useful le: Net Income Net Cash Flow Year 1 Year 2 $49,000 27,000 10,000 4,500 Year 3 $81,500 59,500 42,500 37,000 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. x Open spreadsheet a. Assuming that the desired rate of return is 6%, 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 , the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 6% 18 fx = A B 2 The following data are accumulated by Geddes Company in evaluating the purchase of equipment, having a four-year useful life: Year 1 Year 2 Year 3 Year 4 DATA Net Income Net Cash Flow $49,000 $81,500 27,000 59,500 10,000 42,500 4,500 37,000 9 0 $130,000 2 Cost of equipment 3 Desired rate of return 6% Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (D18) into the appropriate fields in CNOWV2 for grading. Amount Formula Your answer should be a formula. 18 a. Net present value Data & Calculation Mode: Automatic SR