Problem - Beyer Company is considering the purchase of an asset for $380,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year.
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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Total
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Net Cash flows
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$90,000
|
$50,000
|
$70,000
|
$250,000
|
$11,000
|
$471,000
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Compute the payback period for this investment.