Beyer Company is considering the purchase of an asset for $200,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% 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		$	68,000			$	40,000			$	74,000			$	171,000			$	56,000			$	409,000

a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)

b. Should Beyer accept the investment?

• Yes

• No

Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows 1 4 0 $ Totals $ Amount invested Net present value $ 0