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Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $200,000. It is expected to produce the following
Exercise 24-2 Net present value LO P3 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 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.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $83,000 $46,000 $81,000 $161,000 $59,000 $430,000 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.) Net Cash Present Present Year Flows Value of 1 Value of Net at 12% Cash Flows 1 2 3 4 5 Totals Amount invested Net present value Required A Required B >
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