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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 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 $76,000 $54,000 $80,000 $167,000 $49,000 $426,000 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.) Net Cash Present Present Year Flows Value of 1 Value of Net at 12% Cash Flows 1 2 3 4 5 Totals Amount invested Net present value (Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Should Beyer accept the Investment? Should Beyer accept the investment?
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