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Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash flows occur

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Beyer Company is considering the purchase of an asset for $245,000. 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 Year 2 $81,000 $43,000 $75,000 $136,000 $42,000 $377,000 Year 3 Year 4 Year 5 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 Value of 1 of Net Cash Year Flows at 12% Flows 2 4 5 Totals Amount invested Net present value b. Should Beyer accept the investment? Yes No

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