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Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows
Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Net cash flows Year 1 $80,000 Year 2 $110,000 Year 3 $70,000 Year 4 $90,000 Year 5 $50,000 Total $400,000 Assume that Beyer requires a 12% return on its investments. Compute the net present value of this investment. Should Beyer accept the investment?
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