[Solved] Net Present Value Method

Question 37

Net present value method The following data are accumulated by Dillon Company in evaluating the purchase of $39,600 of equipment, having a four-year useful life: img 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 appearing in Exhibit 2 of this chapter. b. Would management be likely to look with favor on the proposal Explain.

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