Net Present Value The following data are accumulated by Geddes Company in evaluating the purchase of $123,300 of equipment, having a four-year useful life: Net Cash Flow $50,000 39,000 Net Income Year 1 Year 2 Year 3 Year 4 $30,000 18,000 9,000 (1,000) 20,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.9430.909 0.893 0.870 0.833 20.890 0.826 0.797 0.756 0.694 0.8400.7510.712 0.658 0.579 40.7920.6830.636 0.572 0.482 0.747 0.6210.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.3760.279 0.627 0.467 0.404 0.327 0.233 : 0.592 0.424.,0.361| 0.284 0.194| 10 0.3860,3220.2470.162 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 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.23:3 0.592 0.424 0.361 0.284 0.194 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 12%, determine the net present value for the proposal. Use the table of the present value of $1 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? than the because the net present value indicates that the return on the proposal is greater Check My Wwork 3 more Checs ly won us All work saved