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Gomez is considering a $ 1 8 0 , 0 0 0 investment with the following net cash flows. Gomez requires a 1 0 %

Gomez is considering a $180,000 investment with the following net cash flows. Gomez requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Year 1 Year 2 Year 3 Year 4 Year 5
Net cash flows $60,000 $40,000 $70,000 $125,000 $35,000
(a) Compute the net present value of this investment.
(b) Should Gomez accept the investment?

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