Beyer Company is considering the purchase of an asset for $235,000. 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		$	72,000			$	53,000			$	96,000			$	166,000			$	55,000			$	442,000

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

A.

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	$72,000
2	53,000
3	96,000
4	166,000
5	55,000
Totals	$442,000
Amount invested
Net present value

B. Should Beyer accept the investment?