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The following data are accumulated by Geddes Company in evaluating the purchase of 142 000...

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The following data are accumulated by Geddes Company in evaluating the purchase of 142 000 of equipment having a four year useful life Net Income Net Cash Flow Year 1 Year 2 Year 3 Year 4 Year 1 2 3 4 5 6 7 8 9 10 32 000 20 000 10 000 1 000 Present Value of 1 at Compound Interest 12 6 0 943 0 890 0 840 0 792 0 747 0 705 0 665 0 627 0 592 0 558 Amount to be invested 10 0 909 0 826 0 751 0 683 0 621 0 564 0 513 0 467 0 424 0 386 Nel present value 0 893 0 797 0 712 0 636 0 567 0 507 0 452 0 404 0 361 0 322 15 0 870 0 756 0 658 0 572 0 497 0 432 0 376 0 327 0 264 0 247 a Assuming that the desired rate of return is 6 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 Present value of net cash flow Sfill in the blank 1 55 000 42 000 32 000 21 000 fill in the blank 2 20 0 833 0 694 0 579 0 482 0 402 0 335 0 279 0 233 0 194 0 162 sfill in the blank likely to look with favor on the proposal because the net present value indicates that the return proposal is than the minimum desired rate of return of 6 2 End of do

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