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

Gomez is considering a $200,000 investment with the following net cash flows. Gomez requires a 9% 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

$70,000

Yean 2

$45,000

Year 3

$76,000

vear 4

$132:99

Year

5

$49,000

(a) Compute the net present value of this investment

(b) Should Gomez accept the investment?

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Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $200.000 investment with the following net cash flows. Gomez reguires a 9 is return on its investments. py of S1. PY ofS1. PVA of S1, and EVA .ot \$1) (Use oppropriate foctor(s) from the tables provided.) (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.)