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Net cash flows Year 1 $83,000 Year 2 $43,000 Year 3 $75,000 Year 4 $161,000 Year 5 $51,000 Total $413,000 a. Compute the net
omework Saved Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whol
Complete this question by entering your answers in the tabs below. Book Hint Required A Required B Should Beyer accept the in

A company is considering the purchase of an asset for $200,000. It expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that the company requires a 12% return on its investments. (PV of $1, FV of $1, PVA OF $1, and FVA of $1)
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Answer #1

1) Calculate net present value

Year Net Cash flow Present value of 1 @12% Present value of net cash flow
1 83000 0.89286 74107.38
2 43000 0.79719 34279.17
3 75000 0.71178 53383.50
4 161000 0.63552 102318.72
5 51000 0.56743 28938.93
Totals 413000 293028
Amount invested -200000
Net present value 93028

b) Yes, accept investment

Note: Question not demand present value related so i done within 5 decimal value

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