Question: Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $245,000 investment with the following net cash flows.

Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3

Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $245,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV of $1. EV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 $65,000 Year 2 $59,000 Year 3 $91,000 Year 4 Year 5 $152,000 $59,000 (e) 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.) nces Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ $ Initial investment Net present value S 0 Required B >

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