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Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the following net cash flows. The cash flows occur
Beyer Company is considering the purchase of an asset for $225,000. 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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 $86,000 Net cash flows Year 2 $42,000 Year 3 $94,000 Year 4 $153,000 Year 5 $45,000 Total $420,000 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 15% 1 2 3 $ 86,000 42,000 94,000 153,000 45,000 420,000 Present Present Value of Value of 1 at Net Cash Flows 0.8695$ 74,777 X 0.7561 31,756 0.6575 61,805 0.5717 87,470 X 0.4971 22,369 X $ 278,177 225,000 $ 53.177 4 5 Totals Amount invested Net present value
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