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Gomez is considering a $225,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1. FV of
Gomez is considering a $225,000 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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $67,000 Year 2 $57,000 Year 3 $71,000 Year 41 $132,000 Year 5 $46,000 (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 Present Value of 1 at Present Value of Net Cash 12% Flows Year 1 $ 67,000 0.8930 S 59,831 Year 2 57,000 0.7971 Year 3 71,000 0.7130 Year 4 132,000 0.6361 Year 5 46,000 0.5671 Totals $ 373,000 $ 59,831 Initial
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