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 >

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
FVA of $1) (Use appropriate factor(s) from the tables provided.)
Year 1
Year 2
$57,000
Year 3
Year 4
Year 5
Total
$398,000
Net cash flows
$69,000
$82,000
$145,000
$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.)
Net Cash
Flows
Present Present Value
of Net Cash
Flows
Year
Value of 1
at 15%
1
69,000
57,000
3
82,000
4
145,000
5
45,000
Totals
24
398,000
Amount invested
Net present value
< Required A
Required B >
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Transcribed Image Text:le Edit View History Bookmarks People Window Help stion 5 - Chapter 24 Requi X O tableb-1.JPG (788x519) O tableb-1.JPG (788x519) E Google Docs ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252... Required Homework 6 Saved Help Save & Exit Check my w 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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 $57,000 Year 3 Year 4 Year 5 Total $398,000 Net cash flows $69,000 $82,000 $145,000 $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.) Net Cash Flows Present Present Value of Net Cash Flows Year Value of 1 at 15% 1 69,000 57,000 3 82,000 4 145,000 5 45,000 Totals 24 398,000 Amount invested Net present value < Required A Required B > < Prev 5 of 11 Next >
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