The following data are accumulated by Waiola Company in evaluating the purchase of $113,700 of equipment, having a 4-year useful life:

Year	Net Income	Net Cash Flow
Year 1	$29,000	$49,000
Year 2	18,000	38,000
Year 3	8,000	28,000
Year 4	(1,000)	19,000

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	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

a. Assuming that the desired rate of return is 15%, 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.

Line Item Description	Amount
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, because the net present value indicates that the return on the proposal is less than the minimum desired rate of return of 15%.