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Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $220,000 investment with the following net cash flows.
Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $220,000 investment with the following net cash flows. Gomez requires a 12% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $68,000 Year 2 $55,000 Year 3 $93,000 Year 4 Year 5 $136,000 $45,000 (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. Required A Required B Compute the net present value of this investment. Note: Round your answers to the nearest whole dollar. Net Cash Year Flows Present Value of 1 at 12% Present Value of Net Cash Flows Year 1 $ 68,000 Year 2 55,000 Year 3 93,000 Year 4 136,000 Year 5 45,000 Totals $ 397,000 $ 0 Initial investment Net present value $ 0 Required A Required B >
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