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Gomez is considering a $230,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of

Gomez is considering a $230,000 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.) Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $61,000 $53,000 $71,000 $143,000 $36,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

ompute the net present value of this investment. (Round your answers to the nearest whole dollar.)

Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows
Year 1 $61,000
Year 2 53,000
Year 3 71,000
Year 4 143,000
Year 5 36,000
Totals $364,000 $0
Initial investment
Net present value $0

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