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Gomez is considering a $220,000 investment with the following net cash flows. Gomez requires a 12% 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 12% 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.) Net cash flows (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Required A Required B Complete this question by entering your answers in the tabs below. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 $69,000 Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value of 1 at 12% Present Value of Net Cash Flows Totals Initial investment Net present value Net Cash Flows Year 2 $48,000 $ 0 $ Year 3 Year 4 $71,000 $144,000 $ Required A 0 0 Required B Year 5 $43,000 >
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