Question: Calculator Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $111,500 of equipment, having a four-year useful
Calculator Net Present Value Method The following data are accumulated by Geddes Company in evaluating the purchase of $111,500 of equipment, having a four-year useful life: Print Item Net Income $29,000 18,000 Net Cash Flow $49,000 38,000 Year 1 Year 2 Year 3 Year 4 (1,000) 19,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0833 20.890 0.826 0.797 0.756 0.694 3 0.840 0.7510.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0482 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 0279 8 0.627 0467 0.404 0.327 0233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 the net present value for the proposal. Use t table of the present value of SI presented above. Ir reamed, a. Assuming that the desired rate of return is 6%, determine round to th nearest dollar. Present value of net cash flow Amount to be invested Previous Next MacBook Air
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