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Exerclse 11-2 Net present value LO P3 Beyer Company is consldering the purchase of an asset for $235,000. It Is expected to produce the following
Exerclse 11-2 Net present value LO P3 Beyer Company is consldering the purchase of an asset for $235,000. 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 approprlate factor(s) from the tables provided.) Total $387,eee Year 5 $37,eee Year 1 $87,eee Year 2 $56,eee Year 3 $74,eee Year 4 $133,eee Net cash flows a. Compute the net present value of this Investment (Round your answers to the nearest whole dollar.) Year FlowsValue of 1 of Net Cash Flows at 12% Totals Amount invested Net present value b. Should Beyer accept the Investment? O Yes O No
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