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Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash : flows
Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net cash flows. The cash : flows occur evenly within each year. Assume that Beyer requires a 15% 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 3 Total Year 1 $62,000 $44,000 $88,000 $148,000 $40,000 $382,000 Year 2 Year 4 Year 5 Net cash flows a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Value Net Cash Flows Year Value of 1 of Net Cash Flows at 15% 4 Totals Amount invested Net present value b. Should Beyer accept the investment? O Yes O No
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