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The folowing dats are accumuiated by Geddes Company in evaluating the puchase of $195,900 of equipment, having a four year use ise Cash Flew 32,000

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The folowing dats are accumuiated by Geddes Company in evaluating the puchase of $195,900 of equipment, having a four year use ise Cash Flew 32,000 55,000 2,000 10,000 2,000 3,000 at Cempound Interest 943 0.747 0.623 60470 0.705 564732 335 6513 0452 3 -62 .47 40403270.233 9 .992 424 0.36 284 0.194 value for the proposal, Use the tabie of above. If nequired, round Assuming thar the The Hey ndow Help Print hem 0.890 0.826 o.797 0.756 0.604 3 0.840 0.751 0.712 0.658 0579 4 0.792 683 0.636 0572 0.482 s 0.747 .621 0567 0497 0402 6 0.705 0.564 0,507 0A32 0.3S 7 0.665 0.S13 0.452 0.376 0.279 8 0.627 0467 404 7 .233 9 0.592 0.424 0361 028 0.194 10 0.558 0.386 0.322 247 162 ir reorea Assuming that me desred rate of return s 15%, determine the eet present vahue for oe propost use the table of the pese e vahe or sipserted above, a. Present value of net cash 6,7701 management be iely to look with favor on the proposal Yesbecause the net present value indicates that the retum on the proposal is greater then the minimum deired rabe of returm o ty that year's ret cash .Ssmact the amou" to be nested from the bots. Pesen vaia of tht be more favorable h apositive net present vakue or a negstive net present value cash fow wa management b b. Consider the time value of money Leaning Oblective 3 The Hey

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