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Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur
Beyer Company is considering the purchase of an asset for $180,000. 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 $63,000 Year 2 $45,000 Year 3 $75,000 Year 4 $139,000 Year 5 $49,000 Total $371,000 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 Present Value Value of 1 of Net Cash at 12% Flows 1 2 3 4 5 Totals Amount invested Net present value Required A Required B Required A Required B Should Beyer accept the investment? Should Beyer accept the investment?
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