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Gomez is considering a $195,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1, FV
Gomez is considering a $195,000 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) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $80,000 Year 2 $58,000 Year 3 $74,000 Year 4 $149,000 Year 5 $59,000 (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.) Present Value Net Cash Year Flows Present Value of 1 at 9% of Net Cash Flows Year 1 $ 80,000 0.9174 $ 73,392 Year 2 58,000 Year 3 74,000 Year 4 149,000 Year 5 59,000 Totals $ 420,000 $ 73,392 Initial investment Net present value $ 73,392 < Required A Required B > Drov 1 of 1 Novt
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