Question

Beyer Company is considering the purchase of an asset for $195,000. 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.) Net cash flows Year 1 $86,000 Year 2 $59,000 Year 3 $72,000 Year 4 $147,000 Year 5 $46,000 Total $410,000 a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. Year Net Cash Flows 1 $ 86,000 2 59.000 3 72,000 147.000 5 46,000 Totals $ 410,000 Amount invested Net present value lolololo Present Present Value of Value of 1 at Net Cash 12% Flows 0.8930$ 76,798 0.7972 47,035 0.7118 51.250 0.6356 93,433 0.5674 26,100 $ 294,616 195,000 $ 99,616 .

Answer 1

The difference is due to Decimals of Factor values. I have calculated the different Values. Please Comment if any issue.Will Help you out

Year	Net Cash Flows	Present Value of 1 at 12%	Present Value of Net Cash Flows
1	$ 86,000	0.8929	$ 76,789
2	$ 59,000	0.7972	$ 47,035
3	$ 72,000	0.7118	$ 51,250
4	$ 147,000	0.6355	$ 93,419
5	$ 46,000	0.5674	$ 26,100
Totals	$ 410,000		$ 294,593
Amount invested			($ 195,000)
Net Present Value			$ 99,593