The following data are accumulated by Geddes Company in evaluating the purchase of $104,500 of...
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Accounting
The following data are accumulated by Geddes Company in evaluating the purchase of $104,500 of equipment, having a four-year useful life: a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. Use the table of t 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 20%
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