Gomez is considering a $180,000 investment with the following net cash flows. Gomez requires a 15% 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	Year 2	Year 3	Year 4	Year 5
Net cash flows	$61,000	$43,000	$94,000	$163,000	$55,000

(a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

Required A

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 Cash Flows
Year 1	$61,000
Year 2	43,000
Year 3	94,000
Year 4	163,000
Year 5	55,000
Totals	$416,000		$0
Initial investment
Net present value			$0