Question: Exercise 26-1 Payback period computation; uneven cash flows OP1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce

 Exercise 26-1 Payback period computation; uneven cash flows OP1 Beyer Company

Exercise 26-1 Payback period computation; uneven cash flows OP1 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. Compute the payback period for this investment (round years to two decimals). Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $60,000 $40,000 $70,000 $125,000 $35,000 $330,000 Exercise 26-2 Net present value CP3 Refer to the information in Exercise 26-1 and assume that Beyer requires a 10% return on its investments. Compute the net present value of this investment. (Round to the nearest dollar.) Should Beyer accept the investment

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