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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. Gomez
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.) Year 1 $85,000 Net cash flows Year 2 $45,000 Year 3 $78,000 Year 4 $140,000 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. 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 9% 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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