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Gomez is considering a $235,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. FV
Gomez is considering a $235,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $67,000 Year 2 $51,000 Year 3 Year 4. $71,000 $160,000 Year 5 $52,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. Note: Round your answers to the nearest whole dollar. Net Cash Year Present Value of 1 Present Value Flows at 9% of Net Cash Flows Year 1 $ 67,000 Year 2 51,000 Year 3 71,000 Year 4 160,000 Year 5 52,000 Totals $ 401,000 $ 0 Initial investment Net present value $ 0
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