2. Beyer Company is considering the purchase of an asset for $235,000. It is expected...
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2. Beyer Company is considering the purchase of an asset for $235,000. 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 | Year 3 | Year 4 | Year 5 | Total | |||||||||||||||||||
| Net cash flows | $ | 83,000 | $ | 60,000 | $ | 78,000 | $ | 163,000 | $ | 51,000 | $ | 435,000 | ||||||||||||
a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)
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