Net present value method The following data are accumulated by Walola Company in evaluating the purchase of $142,900 of equipment, having a 4 -year useful life: a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar, If required, use the minus sign to indicate a negative net present value. a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. 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? , because the net present value indicates that the return on the proposal is greater than the minimurn desired rate of return of 6%. Feedack ronour witwon a. Muitiply the present value of $1 factor for each year (Refer Exhibit 2 in the text.) by that year's net cash flow. Subtract the amount to be invested from the total present value of the net cash flow. Will management be more fovorable to a positive net present value or a negative net present value? b. Consider the time value of moner