Net cash flows $ 63,000 $ 46,000 $ 83,000 $ 159,000 $ 41,000 $ 392,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment?

a. $36,310.55

b. Yes

Explanation:

a. The computation of the net present value is shown below:-

Year        Net Cash Flow      PV at 12%            PV of Net Cash Flows

1                $63,000                  0.893               $56,259

2               $46,000                  0.797                $36,662

3                $83,000                  0.712                $59,096

4                $159,000                 0.636              $101,124

5               $41,000                   0.567               $23,247

Total                                                                  $276,310.55  (B)

Invested Amount                                              $240,000  (A)

Net Present Value                                            $36,310.55  (B - A)

b. Since the net present value comes in positive so Beyer should accept this investment

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?

the first one $24,630