The following data are accumulated by Paxton Company in evaluating the purchase of $137,300 of equipment, having a four-year useful Me: Net Income Net Cash Flow Year 1 $40,000 $68,000 Year 2 24,000 52,000 Year 12,000 39,000 Year 4 (1,000) 27,000 Present Value of S1 at Compound Interest Year 6% 10% 129 15% 20. 0.943 0.909 0.893 0.870 0.833 0.800 0.826 0.792 0.756 0.694 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 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 0.254 0.194 10 0.556 0.36 0,322 0.247 0.162 2 a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal Use the table of the present value of $i presented above. If red, round to the nearest dollar. If required, use the minus to indicate a negative net present value Present value of net cash flow RockeassignmentSessionLocator &inprogress=false ebook Show Me How ORT Calculator UF 6 0.705 0.564 0.432 0.507 0.452 7 0.665 0.513 0.335 0.279 0.233 8 0.376 0.327 0.627 0.467 0.404 9 0.592 0.424 0.361 0.194 10 0.558 0.386 0.284 0.247 0.322 0.162 a. Assuming that the red rate of return is 20%, determine the net present value for the proposal. Use the table of the present value of $1 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? No The net present value indicates that the return on the proposal is less than the minimum desired rate of return of 20% Oh My Work a. Multiply the present value of $1 factor for each year by that year's net cash flow. Subtract the amount to be invested from the total present value of the net cash flow. will management be more favorable to a positive net present value or a negative net present value? b. Consider the time value of money