Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $130,000 of equipment, having a fouryear useful life: Net Income Net Cash Flow Year 1 $47,500 $80,000 Year 2 27,000 59,500 Year 3 20,000 52,500 Year 4 3,000 35,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. ) Open spreadsheet a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value D b. Would management be likely to look with favor on the proposal? IYes Vi \\/ , the net present value indicates that the return on the proposal is Igreater VI J than the minimum desired rate of return of 6%