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15 eBook Hot Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $205,000 investment with the following net
15 eBook Hot Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $205,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. EV of 51. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $83,000 Year 2 $56,000 Year 3 $70,000 Year 4 $140,000 Year 5 $40,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. A Required A Required B Print Compute the net present value of this investment. (Round your answers to the nearest whole dollar) Net Cash Year Flows Reference Value of 1 at 1% Present Value of Net Cash Flows Year 1 S 83,000 Year 2 58,000 Year 3 70,000 Year 4 140,000 Year 5 40,000 Totals $389,000 $ 0 Initial investment Not present valu $ Required>
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