Question: please help with this question! Net Present Value Method The following data are accumulated by Ceddes Company in evalusting the purchase of $102,860 of equipenent,

Net Present Value Method The following data are accumulated by Ceddes Company in evalusting the purchase of \$102,860 of equipenent, having a four-vear useful life: Present Value of $1 at Compound Interest a. Assuming that the desired rate of return is 15%, determine the net present value for the proposat, Use the tabie of the present value of s1 presented above. If required, round to the nearest dollar. If required, use the mlinus sign to indicate a negative net present value. a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal; Use the table of the present value of s1 presented above. If required, round to the nearest dollar. If required, use the minus sigh to indicate a negative net present value. b. Would management be likely to look with fovor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 15%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
