Net Present Value Method The following data are accumulated by Reynolds Company in evaluating the purchase of $153,200 of equipment, having a four-year useful life: Net Income Year 1 Year 2 Year 3 $39,000 24,000 11,000 (1,000) Net Cash Flow $66,000 51,000 38,000 26,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 10.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0,658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.4320.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 2