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Gomez is considering a $200,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV
Gomez is considering a $200,000 investment with the following net cash flows. Gomez requires a 12% 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 $75,000 Year 2 $43,000 Year 3 Year 4 $72,000 $172,000 Year 5 $44,000 (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 12% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value < Required A Required B >
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