Beyer Company is considering the purchase of an asset for $220,000. 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 FVA of $1) (Use approprlate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52,800 $94,000 $151,000 $41, e00 $413,000 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. 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 Net Cash Value of Value of Year Flows 1 at 12% Net Cash Flows 1 IS 75,000 2 52,000 3 94,000 4 151,000 41,000

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Hi expert please answer it same as required to put in the boxes making same tables.
A machine can be purchased for $222,000 and used for five years, ylelding the following net Incomes. In projecting net Incomes,
double-declining depreclation Is applied using a five-year life and a zero salvage value.
Year 1
Year 2
Year 3
Year 4
Year 5
Net income
$18,000
$30, 000
$60,000
$40,500
$184, 000
Compute the machine's payback perlod (Ignore taxes). (Round payback perlod answer to 3 decimal places.)
Computation of Annual Depreciation Expense
Beginning
Book Value
Annual Depr. (40%
of Book Value)
Ending Book
Value
Accumulated
Year
Depreciation at Year-End
1
3
4
5
Annual Cash Flows
Cumulative
Year
Net income
Depreciation
Net Cash Flow
Cash Flow
(222,000)
(222,000)
1
18,000
30,000
3
80,000
80,000
60,000
4
40,500
40,500
100,500
104,000
104,000
204,500
Payback period =r
уears
Transcribed Image Text:A machine can be purchased for $222,000 and used for five years, ylelding the following net Incomes. In projecting net Incomes, double-declining depreclation Is applied using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $18,000 $30, 000 $60,000 $40,500 $184, 000 Compute the machine's payback perlod (Ignore taxes). (Round payback perlod answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Book Value Annual Depr. (40% of Book Value) Ending Book Value Accumulated Year Depreciation at Year-End 1 3 4 5 Annual Cash Flows Cumulative Year Net income Depreciation Net Cash Flow Cash Flow (222,000) (222,000) 1 18,000 30,000 3 80,000 80,000 60,000 4 40,500 40,500 100,500 104,000 104,000 204,500 Payback period =r уears
Beyer Company is considering the purchase of an asset for $220,000. 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
FVA of $1) (Use approprlate factor(s) from the tables provlded.)
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Net cash flows
$75,000
$52, 800
$94,000
$151,000
$41, 000
$413,e00
a. Compute the net present value of this Investment.
b. Should Beyer accept the Investment?
Answer is not complete.
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 vwhole dollar.)
Present
Present
Net Cash
Value of
1 at
12%
Value of
Net Cash
Year
Flows
Flows
1
$ 75,000
2
52,000
3
94,000
4
151,000
5
41,000
Transcribed Image Text:Beyer Company is considering the purchase of an asset for $220,000. 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 FVA of $1) (Use approprlate factor(s) from the tables provlded.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52, 800 $94,000 $151,000 $41, 000 $413,e00 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. 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 vwhole dollar.) Present Present Net Cash Value of 1 at 12% Value of Net Cash Year Flows Flows 1 $ 75,000 2 52,000 3 94,000 4 151,000 5 41,000
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