Beyer Company is considering the purchase of an asset for $215,000. 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				Year 3				Year 4				Year 5				Total
Net cash flows		$	87,000			$	42,000			$	96,000			$	150,000			$	54,000			$	429,000

a. Compute the net present value of this investment. b. Should Beyer accept the investment?

Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)

Year	Net Cash Flows	Present Value of 1 at 12%	Present Value of Net Cash Flows
1	$87,000selected answer correct	0.8929selected answer correct	$77,679selected answer incorrect
2	42,000selected answer correct	0.7972selected answer correct	33,482selected answer correct
3	96,000selected answer correct	0.7118selected answer correct	68,331selected answer incorrect
4	150,000selected answer correct	0.6355selected answer correct	95,328selected answer incorrect
5	54,000selected answer correct	0.5674selected answer correct	30,641selected answer correct
Totals	$429,000		$305,461
Amount invested			(215,000)selected answer correct
Net present value			$90,461