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(Question # 25-1 With my Answers Below) 25-2 Refer to the information in Exercise 25-1 and assume that Bever requires a 10% return on its

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(Question # 25-1 With my Answers Below)

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25-2 Refer to the information in Exercise 25-1 and assume that Bever requires a 10% return on its 2 investments. Compute the net present value of this investment. (Round to the nearest dollar.) Should Bever accept the investment? Use the required excel formula in column C 4 Year 1 Year 2 Year 3 Year 4Year 5 $60,000$40,000$70,000$125,000$35,000 $330,000 Total 6 Net Cash flow 7 Investment 8 Interest Rate Present Present value of Net Cash value Cash 9 Year (show a number-not words) FlowFactor flows 10 12 13 14 15 Total 16Investment 17 Net Present Valuce 4 25-1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Compute the payback period for this investment (round vears to two decimals 2 4 5 Net Cash flow 6 Investment 7 Year 1 Year 2 Year 3 Year 4 Year 5 Total $60,000$40,000$70,000$125,000$35,000 $330,000 $180,000 If you input the correct #'s vour vear will calculated proper! 8 9 Yr1 10 Yr 2 11 Yr 3 12 Yr 4 13 Yr5 14 Total 15 16 17 Annual Cash Flow $60,000 $40,000 $70,000 $125,000 $35,000 $330,000 Cum Cash Flow $60,000 $100,000 $170,000 $295,000 $330,000 $330,000 Years 1.00 1.00 1.00 0.08 3.08

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