EX $12-7$ Net present value method

The following data are accumulated by Waiola Company in evaluating the purchase of $$200,000$

of equipment, having a $4-$year useful life:

a$.$ Assuming that the desired rate of return is $15\%,$ determine the net present value for the proposal.

Use the present value table appearing in Exhibit $2$ of this chapter.

b$.$

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