Should Beyer Accept the Investment?

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 15% 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 $66,888 Net cash flows Year 2 $54,800 Year 3 $98,888 Year 4 $150,000 Year 5 $46,880 Total $406,888 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.) Year Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows 1 2 3 4 5 Totals S 0 S 0 Amount invested Net present value $ 0 Required A Required B