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. Assume that Beyer requires a...


1a.Compute the net present value of this investment.

b. Should Beyer accept the investment?


Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net<br>cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its<br>investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provlded.)<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>Total<br>Net cash flows<br>$70,000<br>$41,000<br>$79,000<br>$163,000<br>$41,000<br>$394,000<br>a. Compute the net present value of this Investment.<br>b. Should Beyer accept the Investment?<br>Complete this question by entering your answers in the tabs below.<br>Required A<br>Required B<br>Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)<br>Present Present Value<br>Net Cash<br>Year<br>Value of 1<br>of Net Cash<br>Flows<br>at 15%<br>Flows<br>1<br>3<br>4<br>Totals<br>2$<br>Amount invested<br>Net present value<br>

Extracted text: 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. Assume that Beyer requires a 15% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provlded.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $70,000 $41,000 $79,000 $163,000 $41,000 $394,000 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Value Net Cash Year Value of 1 of Net Cash Flows at 15% Flows 1 3 4 Totals 2$ Amount invested Net present value

Jun 10, 2022
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