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Gomez is considering a $245,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. EV of
Gomez is considering a $245,000 investment with the following net cash flows. Gomez requires a 9% return on its investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $80,000 Year 2 $47,000 Year 3 $89,000 Year 4 $146,000 Year 5 $55,000 (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 Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value Net Cash Year Present Value of 1 of Net Cash Flows at 9% Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ 0 Initial investment Net present value $ 0
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