eBook Calculator 58 Net Present Value Method having four-year useful E The following data ar life: WIB Net Income Net Cash Flow $61,000 22,000 Year 1 0 0 11,000 35,000 (1,000) 24,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.694 0.840 0.751 0.792 0.683 0.747 0.705 0.564 0.665 0.513 0.627 0.467 0.592 0.424 0.558 0.386 in 0 0 0 NON 0 0 N 0 0 10 eBook Year Show Me How Calculator Present value or 1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.592 0.424 0.361 0.284 0.194 0.558 0.386 0.322 0.247 0.162 10 a. Assuming that the desired rate of return is 10%, 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. Present value of net cash flow Amount to be invested Net present value -9,552 X b. Would management be likely to look with favor on the proposal? Yes because the net present value indicates that the return on the proposal is greater return of 10%. than the minimum desired rate of