Question: any help to solve. right click image and open in new tab for full size! thanks alot!! Net Present Value Method The following data are

any help to solve. right click image and open in new tab for full size! thanks alot!!
Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $170,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 Year 2 Year 3 $37,000 $62,000 23,000 48,000 11,000 36,000 (1,000) 24,000 Present Value of $1 at Compound Interest Year 4 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 6%, determine the net present value for the proposal. Use the table of the present value of si presented above. If required, round to the nearest dollar. If required, use the minus siunto indicate negative net present value. Present value of net cash flow Amount to be invested Net present value than the minimum desired rate of return of 6% 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
