Question: Need help with this accounting problem Beyer Company is considering the purchase of an asset for $245,000. It is expected to produce the following net
Need help with this accounting problem
Beyer Company is considering the purchase of an asset for $245,000. 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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 $71,000 Year 2 $60,000 Year 3 $96,000 Year 4 $141,000 Year 5 $58,000 Total $426,000 Net cash flows a. 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 9% Present Value of Net Cash Flows 2 Totals Amount invested Net present value b. Should Beyer accept the investment? Yes No
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