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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
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 12% 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 $79,000 Year 2 $55,000 Year 3 $70,000 Year 4 $126,000 Year 5 $43,000 (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.) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value
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