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Gomez is considering a $190,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, FV
Gomez is considering a $190,000 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.) Net cash flows Year 1 $67,000 Year 2 $47,000 Year 3 $89,000 Year 4 $143,000 Year 5 $49,000 (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. (Round your answers to the nearest whole dollar.) Year Net Cash Flows Present Value of 1 Present Value of Net Cash at 15% Flows 1 $ 67,000 0.8696 $ 58,261 2 53,000 3 80,000 4 131,000 5 42,000 Totals $ 373,000 58,261 Initial investment Net present value $ 58,261
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