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omez is considering a $220,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1, FV of

omez is considering a $220,000 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.)

Year 1 Year 2 Year 3 Year 4 Year 5
Net cash flows $60,000 $59,000 $74,000 $130,000 $56,000

(a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

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