# Question

The following data are accumulated by Lindquist Company in evaluating the purchase of $100,000 of equipment, having a four-year useful life:

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 appearing in Exhibit 1 of this chapter.

b. Would management be likely to look with favor on the proposal?Explain.

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 appearing in Exhibit 1 of this chapter.

b. Would management be likely to look with favor on the proposal?Explain.

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