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Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cas flows occur
Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cas 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 $82,000 Year 2 $53,000 Year 3 $81,000 Year 4 $129,000 Year 5 $44,000 Total $389,000 Net cash flows a. Compute the net present value of this investment. b. Should Beyer accept the investment? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar) Year Net Cash Flows 1 2 Present Present Value of Value of 1 at Net Cash 12% Flows 0.8929$ 73,216 0.7972 42,251 0.7118 57,654 X 0.6355 81,982 0.5674 24,967 $ 280,070 $ 82,000 53,000 81,000 129,000 44,000 389,000 3 4 5 Totals $
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