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Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $190,000 investment with the following net cash flows.

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Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $190,000 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 $74,000 Year 2 $56,000 Year 3 $85,000 Year 4 $138,000 Year 5 $37,000 (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 $ 74,000 Year 2 56,000 Year 3 85,000 Year 4 138,000 Year 5 37,000 Totals $ 390,000 $ 0 Initial investment Net present value $ < Required A Required B >

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