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Gomez is considering a $190,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1, FV of
Gomez is considering a $190,000 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) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $88,000 Year 2 $53,000 Year 3 Year 4 Year 5 $88,000 $151,000 $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. Required A Required B Compute the net present value of this investment. Note: Round your answers to the nearest whole dollar. Net Cash Year Flows Present Value of 1 at 9% Present Value of Net Cash Flows Year 1 $ 88,000 Year 2 53,000 Year 3 88,000 Year 4 151,000 Year 5 43,000 Totals $ 423,000 $ 0 Initial investment Net present value 0 < Required A Required B > Gomez is considering a $190,000 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) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $88,000 Year 2 $53,000 Year 3 Year 4 Year 5 $88,000 $151,000 $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. Required A Required B Should Gomez accept the investment? Should Gomez accept the investment? Yes < Required A Required B >
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