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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 $1. EV of $1,
Gomez is considering a $195,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV $1. EV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $75,000 Year 21 $57,000 Year 3 $71,000 Year 41 $159,000 Year 5 $54,000 (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. nces 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 Present Value of 1 Flows at 15% of Net Cash Flows Year 1 $ 75,000 Year 2 57,000 Year 3 71,000 Year 4 159,000 Year 5 54,000 Totals $ 416,000 $ Initial investment Denit 2 of 2 Next >
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