Question: plz explain Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $115,800 of equipment, having a 4
Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $115,800 of equipment, having a 4 -year useful life: 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 $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative 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 than the minimum desired rate of return of 15%
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