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Beyer Company is considering the purchase of an asset for $185,000. It is expected to...

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Accounting

Beyer Company is considering the purchase of an asset for $185,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 12% 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.)

Compute the net present value of this investment. (Round your answers to the nearest whole dollar.)
Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows
1
2
3
4
5
Totals
Amount invested
Net present value
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $ 88,000 $ 50,000 $ 71,000 $ 159,000 $ 50,000 $ 418,000

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