excercise 24-2 net present value LO P3

Exercise 24-2 Net present value LO P3 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 9% return on its investments (PV of $1. FV 0f $1. PVA S1, and EVA of $1) (Use appropriate foctor(s) from the tables provided) Year 1 Year 2 Year a Year 4 Year 5 Total Net cash flows 584,000 559.000 $95,000 $161.000 $58,000 $457,000 o. 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 Costi Flow Present Value of 1 at 9% Present Value of Net Cash Flows 1 2 3 4 5 Totals Amount invested Not present value Exercise 24-2 Net present value LO P3 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 9% return on its investments. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $84,000 Year 2 559.000 Year 3 $95.000 Year 4 $161.000 Year 5 $5,000 Total $457,000 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 Should Beyer accept the investment? Should Beyer accept the investment?