Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $139,600 of equipment, having a 4 -year useful life: Would management be likely to look with favor on the proposal? , because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 20%. Feedback Check My Work management be more favorable to a positive net present value or a negative net present value? b. Consider the time value of money