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Gomez is considering a $185,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of
Gomez is considering a $185,000 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) Note: Use appropriate factor(s) from the tables provided. Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $65,000 $50,000 $78,000 $152,000 $59,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment?
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Net cash flows | $65,000 | $50,000 | $78,000 | $152,000 | $59,000 |
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