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Beyer Company is considering the purchase of an asset for $195,000. It is expected to produce the following net cash flows. The cash flows
Beyer Company is considering the purchase of an asset for $195,000. 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. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $83,000 Year 2 $58,000 Year 3 $80,000 Year 4 $152,000 Year 5 $59,000 Total $432,000 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. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value Year Net Cash Flows Present Value of 1 at 12% of Net Cash Flows 1 2 3 4 5 Totals Amount invested Net present value Required A Required B >
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