Beyer Company is considering the purchase of an asset for $205,000. 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.)

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

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Net cash flows

$

80,000

$

42,000

$

98,000

$

136,000

$

52,000

$

408,000

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 1 2 3 4 5