Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. net present value method the following data are ac

Net present value method The following data are accumulated by Geddes Company in evaluating the...

50.1K

Verified Solution

Question

Accounting

Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $140,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $49,500 $84,500 Year 2 21,000 56,000 Year 3 12,500 47,500 Year 4 2,000 37,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 12%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $fill in the blank 2 Would management be likely to look with favor on the proposal? , the net present value indicates that the return on the proposal is than the minimum desired rate of return of 12%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Mechanical Engineering
1.2K views

Please solve it quickly as it is urgent AC and Refrigeration Electrical Systems Note: Think carefully about...

Advance Math
1.2K views

y=fx1, ……..,x5) St: c1=w1(x1, ……..,x5) c2=w2(x1, ……..,x5) By using the signs of the principal minors Hj 1-Derive the second- order-sufficient condition for maximum. 2-Derive the...

Biology
1.2K views

Which of the following describes the blood in the secretions?A An indication that the client...

Statistics
1.2K views

A recent study surveyed 1 341 households asking if the residents rented or owned and...

Algebra
1.2K views

If the following polynomial is written in standard form, what would be the leadingcoefficient?-3x +...

Algebra
1.2K views

Exercise 10 0 12 B level Prove that 6 o6 0 implies that im 60...

Accounting
1.2K views

Park City uses encumbrance accounting and formally integrates its budget into the general fund's accounting...

Accounting
1.2K views

help me to correct the wrong number on red frame ...

Accounting
1.2K views

(Discribe) not just list four tasks the purchases computer application performs automatically in the integrated...

Accounting
1.2K views

Olve Corp cutrently makes 11700 subcomponents a year in one of its factories The unit...

Finance
1.2K views

A company forecasts its free cash flows (in millions) as shown below. If the companys...

Accounting
1.2K views

On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.012...