Question: Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following

Exercise 24-2 Net present value LO P3

Beyer Company is considering the purchase of an asset for $190,000. 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 appropriate factor(s) from the tables provided.)

	Year 1			Year 2			Year 3			Year 4			Year 5			Total
Net cash flows		$	82,000		$	55,000		$	92,000		$	131,000		$	47,000		$	407,000

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