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Gomez is considering a $205,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. FV of
Gomez is considering a $205,000 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.) Year 3 $82,880 Year 4 $154,800 Year 5 $46,000 Year 1 Year 2 Net cash flows $61,080 $47,020 (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) Year Net Cash Flows Present Value of 1 at 996 Present Value of Net Cash Flows 1 $ 61.000 2 47.000 3 82.000 4 154.000 5 46.000 Totals $390.000 Initial investment Net present value S 0 $ 0 Required Required B
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