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$\backslash$table$[[,$Net Income,Net Cash Flow$],[$Year $1,$$$38,000,$$$64,000],[$Year $2,23,000,49,000],[$Year $3,11,000,37,000],[$Year $4,(1,000),25,000]]$

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Present Value of $$1$ at Compound Interest

$\backslash$table$[[$Year$,6\%,10\%,12\%,15\%,20\%],[1,0\mathrm{.}943,0\mathrm{.}909,0\mathrm{.}893,0\mathrm{.}870,0\mathrm{.}833],[2,0\mathrm{.}890,0\mathrm{.}826,0\mathrm{.}797,0\mathrm{.}756,0\mathrm{.}694],[3,0\mathrm{.}840,0\mathrm{.}751,0\mathrm{.}712,0\mathrm{.}658,0\mathrm{.}579],[4,0\mathrm{.}792,0\mathrm{.}683,0\mathrm{.}636,0\mathrm{.}572,0\mathrm{.}482],[5,0\mathrm{.}747,0\mathrm{.}621,0\mathrm{.}567,0\mathrm{.}497,0\mathrm{.}402],[6,0\mathrm{.}705,0\mathrm{.}564,0\mathrm{.}507,0\mathrm{.}432,0\mathrm{.}335],[7,0\mathrm{.}665,0\mathrm{.}513,0\mathrm{.}452,0\mathrm{.}376,0\mathrm{.}279],[8,0\mathrm{.}627,0\mathrm{.}467,0\mathrm{.}404,0\mathrm{.}327,0\mathrm{.}233],[9,0\mathrm{.}592,0\mathrm{.}424,0\mathrm{.}361,0\mathrm{.}284,0\mathrm{.}194],[10,0\mathrm{.}558,0\mathrm{.}386,0\mathrm{.}322,0\mathrm{.}247,0\mathrm{.}162]]$

Present value of net cash flow

Amount to be invested

$$

$$

$$

Net present value $$

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

No grad

The net present value indicates that the return on the proposal is less $q,$ than the minimum desired rate of return of $12\%.$