The following data are accumulated by Zadok Company in evaluating the purchase of $370,000 of equipment, having a four-year useful life:

Net Income Net Cash Flow
Year 1 $67,500 $160,000
Year 2 47,500 140,000
Year 3 (12,500) 80,000
Year 4 (12,500) 80,000

a. Assuming that the desired rate of return is 12%, determine the net present value for the
proposal.

b. Would management be likely to look with favor on the proposal? Explain.

$-7,751.85

The management is not likely to look with favour on the proposal because the NPV is negative. This means that the cost of the project exceeds the present value of cash flows. The project is not profitable.  

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

Cash flow in year 0 = $-370,000

Cash flow in year 1 = $160,000

Cash flow in year 2 = $140,000

Cash flow in year 3 = $80,000

Cash flow in year 4 = $80,000

I = 12%

NPV = $-7,751.85

The management is not likely to look with favour on the proposal because the NPV is negative. This means that the cost of the project exceeds the present value of cash flows. The project is not profitable.  

To determine NPV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

answer; /// i do believe the correct answer is (possession utility);