Question: ork Saved Help Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $185,000. It is expected to


ork Saved Help Exercise 24-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $185,000. 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. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $64,000 Year 2 $58,000 Year 3 $78,000 Year 4 $131,000 Year 5 $45,000 Total $376,000 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.) Present Present Value Year Net Cash Flows Value of 1 at 12% of Net Cash Flows 1 2 3 4 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 es 2 3 4 5 Totals $ 0 $ 0 Amount invested Net present value $ 0 Required A Required B > $64,000 $58,000 $78,000 $ 131,000 $45,000 Tot $376 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? ces Should Beyer accept the investment?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
