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Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the following net cash flows. The cash flows occur
Beyer Company is considering the purchase of an asset for $240,000. 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.) Net cash flows Year 1 $85,000 Year 2 $47,000 Year 3 $90,000 Year 4 $170,000 Year 5 $44,000 Total $436,000 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) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows $ 85,000 47,000 90,000 170,000 44,000 436,000 4 5 Totals $ Amount invested Net present value
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