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Gomez is considering a $190,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of
Gomez is considering a $190,000 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) (Use appropriate factor(s) from the tables provided.) Year 1 $ 84,000 Year 2 $55,000 Year 3 $77,000 Year 4 $160,000 Year 5 $44,000 Net cash flows (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? X Answer is not complete. 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 Net Cash Flows 75,004 Year 1 Year 2 Present Value of 1 at 12% 0.8929 0.7972 0.7119 0.6355 0.5674 $ 84,000 55,000 77,000 160,000 44,000 $ 420,000 43,846 54,815 X 101,680 24.966 Year 3 Year 4 Year 5 Totals Initial investment Net present value S 300,311 $ 300,311
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