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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.
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 15% 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.) Net cash flows Year 1 $86,000 Year 2 $54,000 Year 3 $99,000 Year 4 $163,000 Year 5 $38,000 (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. (Round your answers to the nearest whole dollar.) Present Value Year Net Cash Flows Present Value of 1 of Net Cash at 15% Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ 0 Initial investment Net present value $ 0 < Required A Required B >
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