Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $154,200 of equipment, having a four-year useful life Net Cash Flow Year 1 Year 2 Year 3 Year 4 Net Income $41,000 25,000 12,000 (1,000) $70,000 54,000 41,000 27,000 Present Value of $1 at Compound Interest 12% 0.943 0.909 0.893 0.870 0.833 0.890 0.8260.797 0.7560.694 0.8400.751 0.712 0.658 0.579 0.7920.683 0.636 0.5720.482 0.7470.6210.567 0.497 0.402 0.705.564 0.507 0.432 0.335 0.665 0.513 0.452 0.3760.279 0.627 0.470.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 0.558 .3860.322 0.2470.162 Year 6% 10% 15% 20% 10 a. Assuming that the desired rate o return s 15% determine e net present value or the proposal. Use the table o the present value of $1 presented above 1 eq 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? The net present value indicates that the return on the proposel is lessthan the minimum desired rate of return of 15% ed round the nearest dollar. I required, use the minus s n to indcate a nega ve net present value. 149,409 168,900 19,411