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Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $195,000. 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 $195,000. 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. (PVof $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 $69,000 41,000 $88,000 139,000 47,000 $384,000 Year 3 Year 4 Year 5 Total Net cash flows a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Net CashV Present Present Value Value of 1 of Net Cash Year Flows at 12% Flows 4 Totals Amount invested Net present value b. Should Beyer accept the investment Yes O No
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