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Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $185,000. 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 $185,000. It is expected to produce the following net ca flows occur evenly within each year. Assume that Beyer requires a 12% return on its investments. PV of $1. FV of $1. FVA of $1) (Use appropriate factor(s) from the tables provided.) points Year 1 $61,000 Year 2 $59,000 Year 3 $75,000 Net cash flows Year 4 $169,000 Year 5 $48,000 Total $412,000 (8 012342 a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) eBook Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows N- Uw Totals Amount invested Net present value b. Should Beyer accept the investment? Yes No
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