Question
Gomez is considering a $215,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, FV of
Gomez is considering a $215,000 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) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $71,000 $49,000 $84,000 $146,000 $56,000 (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 ARequired 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 15% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $0 $0 Initial investment Net present value $0 Should Gomez accept the investment? Should Gomez accept the investment?
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