The following data are accumulated by Waiola Company in evaluating the purchase of $197,000 of equipment, having a 4-year useful life: Year 1 Net Income Net Cash Flow $42,000 $72,000 Year 2 26,000 55,000 Year 3 13,000 42,000 Year 4 (1,000) 28,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0,826 0.797 0.756 0.694 3 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 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 10 0.558 0.386 0.322 0.284. 0.194 0.247 0.162 a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, indicate a negative net present value. Present value of net cash flow Amount to be invested a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, roun 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? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 6%.