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Beyer Company is considering the purchase of an asset for $205,000. It is expected to produce the following net cash flows. The cash flows occur

Beyer Company is considering the purchase of an asset for $205,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its investments. image text in transcribed
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Beyer Company is considering the purchase of an asset for $205,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 4 Year 5 Total Net cash flows $69,000 $46,000 $88,000 $164,000 542,000 $409,000 Year 3 a. Compute the net present value of this Investment. b. Should Beyer accept the investment? Complete this question by entering your answers Required A Required B Compute the net present value of this investment. (Rou Year Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows 1 2 3 4 5 + Totals $ 0 $ 0 Amount invested Net present value $ 0

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