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Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 investment with the following net cash flows.
Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 investment with the following net cash flows. Gomez requires a 9% 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 $84,000 Year 2 $46,000 Year 3 $99,000 Year 4 $166,000 Year 5 $46,000 (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 Net Cash Year Present Value of 1 of Net Cash Flows at 9% Flows Year 1 $ 84,000 Year 2 46,000 Year 3 99,000 Year 4 166,000 Year 5 46,000 Totals $ 441,000 $ 0 Initial investment Net present value 0 < Required A Required B >
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