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# Exercise 1 1 - 7 ( Algo ) Net present value and unequal cash flows LO P 3 Gomez is considering a $ 2 1

Exercise $11-7\text{}($Algo$)$ Net present value and unequal cash flows LO P$3$

Gomez is considering a $$210,000$ investment with the following net cash flows. Gomez requires a $12\%$ return on its investments. $($PV of $$1.FV$ of $$1.$ PVA of $$1,$ and FVA of $$1\text{})$

Note: Use appropriate foctor$($s$)$ from the tables provided.

$\backslash $table$[[$Net cash flows,Year $1,$Year $2,$Year $3,$Year $4,$Year $5]]$

$($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.

Compute the net present value of this investment.

Note: Round your answers to the nearest whole dollar.

$\backslash $table$[[$Year$,\backslash $table$[[$Net Cash$],[$Flows$]],\backslash $table$[[$Present$],[$Value of $1],[$at $12\%]],\backslash $table$[[$Present Value$],[$of Net Cash$],[$Flows$]]],[$Year $1,$$$87,000,,],[$Year $2,56,000,,],[$Year $3,90,000,,],[$Year $4,148,000,,],[$Year $5,60,000,,],[$Totals$,$$$441,000,,$$

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