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Gomez is considering a $195,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, FV
Gomez is considering a $195,000 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) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $70,000 Year 2 $45,000 Year 3 Year 4 Year 5 $98,000 $146,000 $51,000 (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 15% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Totals Year 5 Initial investment Net present value $ 0 $ 0
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