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Gomez is considering a $230,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1, FV of
Gomez is considering a $230,000 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 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 $78,000 Totals Initial investment Net present value Net Cash Flows Year 2 $55,000 Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value of 1 at 15% Present Value of Net Cash Flows $ 0 Year 3 $75,000 $ $ Year 4 $170,000 0 0 Year 5 $58,000
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