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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 of
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 $73,000 Year 2 $53,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Year 3 $77,000 Year 4 $137,000 Year 5 $57,000
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