1.

2.

Beyer Company is considering the purchase of an asset for $200,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 5 Year 1 $86,000 $46,000 $96,000 $169,000 $44,000 $441,000 Year 2 Year 3 Year 4 Total Net cash flows a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Value Net Cash Flows Year Value of 1 of Net Cash Flows at 12% 2 4 Totals Amount invested Net present value b. Should Beyer accept the investment? Yes No A machine can be purchased for $100,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight line depreciation is applied, using a five-year life and a zero salvage value Year 1 $6,700$16,70038,000 $25,100 $66,800 Year 2 Year 3 Year 4 Year 5 Net income Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow (100,000) $ (100,000) 6,700 16,700 38,000 25,100 66,800 2 4 Payback period