Question: Gomez is considering a $ 2 4 0 , 0 0 0 investment with the following net cash flows. Gomez requires a 1 2 %

Gomez is considering a $240,000 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)
Note: Use appropriate factor(s) from the tables provided.
Year 1 Year 2 Year 3 Year 4 Year 5
Net cash flows $60,000 $43,000 $89,000 $141,000 $39,000
(a) Compute the net present value of this investment.
(b) Should Gomez accept the investment?

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