Question
2) Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The cash flows
2)
| Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Assume that Beyer requires a 15% return on its investments. (FV of $1,PV of $1,FVA of $1andPVA of $1)(Use appropriate factor(s) from the tables provided.) |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | |||||||||||||||||||
| Net cash flows | $ | 83,000 | $ | 45,000 | $ | 99,000 | $ | 145,000 | $ | 38,000 | $ | 410,000 | ||||||||||||
| a. | Compute the net present value of this investment. |
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood,
1st Edition
1941651100, 978-1941651100
