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what are the correct answers for required A Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the
what are the correct answers for required A
Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its Investments Post EVS1 PVALSI and EVA o 1) (Use appropriate factor(s) from the tables provided.) Net cash flow Yeart $85.000 Your 2 $45,000 Year $73,000 Year 4 $145,000 Year 537,000 Total 5385,000 a. Compute the net present value of this investment b. Should Bevet 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 dolor) Net Cash Present Present Value Year Value of 1 of Net Canh Flows at 9% Flows 1 $ B5 000 $ 77.945 2 45,000 0.8420 37.890 3 73.000 0.7720 56,356 4 145,000 07080 102.650 5 37 000 0.8500 24.050 Totals $385.000 $ 200,001 Amount investod 225.000 Not present value $ 73,901 RES Required B > Step by Step Solution
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