Question: Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $240,000 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 $240,000 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 $79,000 Year 2 $47,000 Year 3 $93,000 Year 4 $164,000 Year 5 $41,000 (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. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value Net Cash Year Present Value of 1 of Net Cash Flows at 9% Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals $ 0 $ O Initial investment Net present value $ 0

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