ch24 q12

Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $215,000, 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. EVOL$1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $78,000 Year 2 $41,000 Year 3 $89,000 Year 4 $149,000 Year 5 555,000 Total $412,000 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.) Year Net Cash Flows Present Value of 1 at 12 Present Value of Net Cash Flows 1 2 3 4 5 Totals Amount invested Net present value Required B)