The following data are accumulated by Wocester Hat Company in evaluating the purchase of $160,000 of equipment, having a four-year useful life: Net Income (Loss) $43,000 26,000 13,000 (1,000) Year 1 Year 2 Year 3 Year 4 Year 1 2 3 4 5 6 7 8 9 10 6% 0.943 Present Value of $1 at Compound Interest 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 Net Cash Flows 0.322 $73,000 56,000 42,000 28,000 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 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, 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?