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Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the following net cash flows. The cash flows occur
Beyer Company is considering the purchase of an asset for $225,000. 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.) Total Year 1 $76,00 $42,000 $99,000 $142,000 $48,000 $407,000 Year 2 Year 3 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 at 15% Flows Totals Amount invested Net present value b. Should Beyer accept the investment? O Yes O No
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