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4 Gomez is considering a $190,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV
4 Gomez is considering a $190,000 investment with the following net cash flows. Gomez 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.)
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Net cash flows | $69,000 | $52,000 | $83,000 | $166,000 | $56,000 |
(a) Compute the net present value of this investment. (b) Should Gomez accept the investment?
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