8.

Beyer Company is considering the purchase of an asset for $230,000. 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 1 $64,000 Year 2 $51,000 Year 3 $94,000 Year 4 $143,000 Year 5 $53,000 Total $405,0 Net cash flows a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Totals $ Amount invested Net present value b. Should Beyer accept the investment? Yes