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A company is considering the purchase of an asset for $200,000. It expected to produce the following net cash flows. The cash flows occur evenly
A company is considering the purchase of an asset for $200,000. It expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that the company requires a 12% return on its investments. (PV of $1, FV of $1, PVA OF $1, and FVA of $1)
Net cash flows Year 1 $83,000 Year 2 $43,000 Year 3 $75,000 Year 4 $161,000 Year 5 $51,000 Total $413,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment? Complete this question by entering your answers in the tabs below. omework Saved Required A Required B 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 $ 1 2 3 83,000 43,000 75,000 161,000 51,000 413,000 5 Totals $ Amount invested Net present value Required B > Complete this question by entering your answers in the tabs below. Book Hint Required A Required B Should Beyer accept the investmen 2S C Should Beyer accept the investm Step by Step Solution
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