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Gomez is considering a $200,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, FV
Gomez is considering a $200,000 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 $74,000 Year 2 $46,000 Year 3 $88,000 Year 4 $127,000 Year 5 $52,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Required A Required B Compute the net present value of this investment. Note: Round your answers to the nearest whole dollar. Net Cash Year Present Value of 1 Present Value of Net Cash Flows at 15% Flows Year 1 $ 74,000 Year 2 46,000 Year 3 88,000 Year 4 127,000 Year 5 52,000 Totals $ 387,000 $ 0 Initial investment Net present value $ 0
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