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Business, 06.08.2021 18:50 nickboy52210

Beyer Company is considering the purchase of an asset for $210,000. 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. Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $73,000 $48,000 $92,000 $172,000 $56,000 $441,000
a. Compute the net present value of this investment.
b. Should Beyer accept the investment?

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