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Gomez is considering a $250,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of
Gomez is considering a $250,000 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.) Net cash flows Year 1 $76,000 Year 2 $55,000 Year 3 $92,000 Year 4 $137,000 Year 5 $42,000 (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 Year Net Cash Flows Present Value of 1 of Net Cash at 12% Flows 1 2 3 4 5 Totals Initial investment Net present value Required A Required B Should Gomez accept the investment? Should Gomez accept the investment
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