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Exercise 1 1 - 7 ( Algo ) Net present value and unequal cash flows LO P 3 Gomez is considering a $ 2 1

Exercise 11-7(Algo) Net present value and unequal cash flows LO P3
Gomez is considering a $210,000 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)
Note: Use appropriate foctor(s) from the tables provided.
\table[[Net cash flows,Year 1,Year 2,Year 3,Year 4,Year 5]]
(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.
Compute the net present value of this investment.
Note: Round your answers to the nearest whole dollar.
\table[[Year,\table[[Net Cash],[Flows]],\table[[Present],[Value of 1],[at 12%]],\table[[Present Value],[of Net Cash],[Flows]]],[Year 1,$87,000,,],[Year 2,56,000,,],[Year 3,90,000,,],[Year 4,148,000,,],[Year 5,60,000,,],[Totals,$441,000,,$
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