Gomez is considering a $205,000 investment with the following net cash flows. Gomez requires a 12%...
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Gomez is considering a $205,000 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 $66,000 Year 2 $47,000 Year 3 $91,000 Year 4 $168,000 Year 5 $54,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? 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 at 12% of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ 0 Initial investment Net present value $ 0 A company is considering a $161,000 investment in machinery with the following net cash flows. The company requires a 10% 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 Flow Year 1 $10,000 Year 2 $27,000 Year 3 $53,000 Year 4 $40,000 Year 5 $108,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Net Cash Year Flows Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ Initial investment Net present value $ 0 0 Gomez is considering a $205,000 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 $66,000 Year 2 $47,000 Year 3 $91,000 Year 4 $168,000 Year 5 $54,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? 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 at 12% of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ 0 Initial investment Net present value $ 0 A company is considering a $161,000 investment in machinery with the following net cash flows. The company requires a 10% 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 Flow Year 1 $10,000 Year 2 $27,000 Year 3 $53,000 Year 4 $40,000 Year 5 $108,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Net Cash Year Flows Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ Initial investment Net present value $ 0 0
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