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 15% return on its investments. (PV of $1. FV of $1, PVA of $1, and FEVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 $57,000 Year 3 Year 4 $145,000 Year 5 Net cash flows $69,000 $82,000 Total $398,000 $45,000 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. Require A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Net Cash Flows Value of 1 at 15% Present Value of Net Cash Flows Year 69,000 57,000 82,000 %24 2 3 145,000 45,000 $ 398,000 Totals Amount invested Net present value Required Required B >

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 15% return on its investments. (PV of $1. FV of $1, PVA of $1, and FEVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 $57,000 Year 3 Year 4 $145,000 Year 5 Net cash flows $69,000 $82,000 Total $398,000 $45,000 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. Require A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Net Cash Flows Value of 1 at 15% Present Value of Net Cash Flows Year 69,000 57,000 82,000 %24 2 3 145,000 45,000 $ 398,000 Totals Amount invested Net present value Required Required B >

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 2.1C

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