The following data are accumulated by Dillon Company in evaluating the purchase of $39,600 of equipment, having a four-year useful life: a. Assuming that the desired rate of return is 15%, determine...

The following data are accumulated by Dillon Company in evaluating the purchase of $39,600 of equipment, having a four-year useful life:

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.