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Exercise 24-7 (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 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 $78,000 Year 2 $43,000 Year 3 $79,000 Year 4 $160,000 Year 5 $49,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Answer is not complete. 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.) Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows Year 1 $ 78,000 Year 2 43,000 Year 3 79,000 Year 4 160,000 Year 5 49,000 Totals $ 409,000 $ 0 Initial investment Net present value $ 0 Required A Required B >

Exercise 24-7 (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 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 $78,000 Year 2 $43,000 Year 3 $79,000 Year 4 $160,000 Year 5 $49,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Answer is not complete. 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.) Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows Year 1 $ 78,000 Year 2 43,000 Year 3 79,000 Year 4 160,000 Year 5 49,000 Totals $ 409,000 $ 0 Initial investment Net present value $ 0 Required A Required B >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 24-7 (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 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 $78,000 Year 2 $43,000 Year 3 $79,000 Year 4 $160,000 Year 5 $49,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Answer is not complete. 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.) Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows Year 1 $ 78,000 Year 2 43,000 Year 3 79,000 Year 4 160,000 Year 5 49,000 Totals $ 409,000 $ 0 Initial investment Net present value $ 0 Required A Required B >
Transcribed Image Text:Exercise 24-7 (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 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 $78,000 Year 2 $43,000 Year 3 $79,000 Year 4 $160,000 Year 5 $49,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Answer is not complete. 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.) Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows Year 1 $ 78,000 Year 2 43,000 Year 3 79,000 Year 4 160,000 Year 5 49,000 Totals $ 409,000 $ 0 Initial investment Net present value $ 0 Required A Required B >
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