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Gomez is considering a $225,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1. FV
Gomez is considering a $225,000 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.) Net cash flows (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Required A Required B Year 1 $65,000 Year 2 $53,000 Year Net Cash Flows Year 3 $84,000 Complete this question by entering your answers in the tabs below. Year 4 $137,000 Answer is not complete. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Present Value of 1 at Value of Net Cash Flows 15% Year 5 $45,000 Retu 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.) Present Value of Net Cash Flows Year 1 2 3 4 Net Cash Flows $ 65,000 53,000 84,000 137,000 45,000 $ 384,000 5 Totals Initial investment Net present value Present Value of 1 at 15% 0.8696 0.7561 0.6575 0.5718 0.4972 $ 56,522 X 40,076 55,231 78,330 22,373 $ 252,532 225,000 27,532 $
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