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Net Cash Year Present Value of 1 Present Value of Net Cash Flows at 12% Flows Year 1 Year 2 Year 3 Year 4 Year

Net Cash Year Present Value of 1 Present Value of Net Cash Flows at 12% Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ 0 Initial investment Net present value $ 0 Gomez is considering a $245,000 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 $64,000 Year 2 $44,000 Year 3 $71,000 Year 4 $160,000 Year 5 $37,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment

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