Net Present Value Method

The following data are accumulated by Mad Hatter Company in evaluating the purchase of $\backslash (\backslash$$ $141,800\backslash )$ of equipment, having a four$-$year useful life with no residual value:

Present Value of $\backslash$$$1$ at Compound Interest a$.$ Assuming that the desired rate of return is $\backslash (20\backslash \%\backslash ),$ determine the net present value for the proposal. Use the table of the present value of $\backslash (\backslash$$ $1\backslash )$ presented above. If required, use the minus sign to indicate a negative net present value.

Total present value of net cash flow $\backslash$$

Amount to be invested

Net present value