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Gomez is considering a $220,000 Investment with the following net cash flows. Gomez requires a 15% return on its Investments. PV of $1, FV of
Gomez is considering a $220,000 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 $85,880 $59,880 $99, eee $137,882 $54,eee (a) Compute the net present value of this Investment (b) Should Gomez accept the investment? Answer is not complete. 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 1 at Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value $ 85,000 59,000 99,000 137,000 54,000 $ 434,000 Present Present Value of Value of Net Cash 15% Flows 0.8696s 73,913 X 0.7581 44,612 x 0.6675 0.5718 0.4972 S 118,525 S 118,525
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