Extra credit #3

Gomez is considering a $230,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, EN of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 $78,000 Year 2 $50,000 Year 3 $90,000 Net cash flows Year 4 $154,000 Year 5 $44,000 (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 S Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) 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 15% Present Value of Net Gash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ Initial investment $ Net present value Required A Required B Should Gomez accept the investment? Should Gomez accept the investment