Question: Exercise 26-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 investment with the following net cash flows.

Exercise 26-7 (Algo) Net present value and unequal cash flows LO P3

Exercise 26-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $235,000 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) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $85,000 Year 2 $48,000 Year 3 $92,000 Year 4 $170,000 Year 5 $43,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

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