Business, 20.04.2020 23:10 Darkphyx

Net present value LO P3 Beyer Company is considering the purchase of an asset for $250,000. 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)

Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $83,000 $43,000 $76,000 $127,000 $49,000 $378,000

Required:
a. Compute the net present value of this investment.
b. Should Beyer accept the investment?

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Net present value LO P3 Beyer Company is considering the purchase of an asset for $250,000. It is ex...