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Beyer Company is considering the purchase of an asset for $220,000. 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 approprlate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52,800 $94,000 $151,000 $41, e00 $413,000 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Net Cash Value of Value of Year Flows 1 at 12% Net Cash Flows 1 IS 75,000 2 52,000 3 94,000 4 151,000 41,000

Beyer Company is considering the purchase of an asset for $220,000. 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 approprlate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52,800 $94,000 $151,000 $41, e00 $413,000 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Net Cash Value of Value of Year Flows 1 at 12% Net Cash Flows 1 IS 75,000 2 52,000 3 94,000 4 151,000 41,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Hi expert please answer it same as required to put in the boxes making same tables.
A machine can be purchased for $222,000 and used for five years, ylelding the following net Incomes. In projecting net Incomes, double-declining depreclation Is applied using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $18,000 $30, 000 $60,000 $40,500 $184, 000 Compute the machine's payback perlod (Ignore taxes). (Round payback perlod answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Book Value Annual Depr. (40% of Book Value) Ending Book Value Accumulated Year Depreciation at Year-End 1 3 4 5 Annual Cash Flows Cumulative Year Net income Depreciation Net Cash Flow Cash Flow (222,000) (222,000) 1 18,000 30,000 3 80,000 80,000 60,000 4 40,500 40,500 100,500 104,000 104,000 204,500 Payback period =r уears
Transcribed Image Text:A machine can be purchased for $222,000 and used for five years, ylelding the following net Incomes. In projecting net Incomes, double-declining depreclation Is applied using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $18,000 $30, 000 $60,000 $40,500 $184, 000 Compute the machine's payback perlod (Ignore taxes). (Round payback perlod answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Book Value Annual Depr. (40% of Book Value) Ending Book Value Accumulated Year Depreciation at Year-End 1 3 4 5 Annual Cash Flows Cumulative Year Net income Depreciation Net Cash Flow Cash Flow (222,000) (222,000) 1 18,000 30,000 3 80,000 80,000 60,000 4 40,500 40,500 100,500 104,000 104,000 204,500 Payback period =r уears
Beyer Company is considering the purchase of an asset for $220,000. 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 approprlate factor(s) from the tables provlded.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52, 800 $94,000 $151,000 $41, 000 $413,e00 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest vwhole dollar.) Present Present Net Cash Value of 1 at 12% Value of Net Cash Year Flows Flows 1 $ 75,000 2 52,000 3 94,000 4 151,000 5 41,000
Transcribed Image Text:Beyer Company is considering the purchase of an asset for $220,000. 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 approprlate factor(s) from the tables provlded.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $75,000 $52, 800 $94,000 $151,000 $41, 000 $413,e00 a. Compute the net present value of this Investment. b. Should Beyer accept the Investment? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest vwhole dollar.) Present Present Net Cash Value of 1 at 12% Value of Net Cash Year Flows Flows 1 $ 75,000 2 52,000 3 94,000 4 151,000 5 41,000
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