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Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the
Exercise 24-2 Net present value LO P3 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.) Net cash flows Year 1 $86,000 Year 2 $58,000 Year 3 $84,000 Year 4 Year 5 $144,000 $57,000 Total $429,000 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.) Present Value Year Net Cash Flows Present Value of 1 at 15% of Net Cash Flows 1 2 3 4 5 Totals $ 0 Amount invested Net present value 0 $ 0 < Required A Required B >
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