Net Present Value Method The following data are accumulated by Reynolds Company in evaluating the purchase of $146,500 of equipment, having a four-year useful life: Net Income Net Cash Floww Year 1 Year 2 Year 3 Year 4 $36,000 22,000 11,000 (1,000) $61,000 47,000 35,000 24,000 Present Value of $1 at Compound Interest 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 1090 15% 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 0.705 0.564 0.507 0.432 0.665 0.513 0.452 0.376 0.627 0.467 0.4040.327 0.284 0.558 0.386 0.322 0.247 Year 690 12% 0.943 0.909 0.893 4 0.592 0.424 0.361 10