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Net present value of the Investment

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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 \(9 \%\) return on its investments. \(P V\) of \(\$ 1, F V\) of \(\$ 1, P V A\) of \(\$ 1\), and \(F VA\) of \(\$ 1\) ) (Use appropriate factor(s) from the tables provided.)


a. Compute the net present value of this investment.

b. Should Beyer accept the investment?

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answered by: Shaik sultan
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