S Gomez is considering a $250,000 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) (Use appropriate factor(s) from the tables provided.) Net cash flows (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Year 1 $86,000 Year Year 1 Year? Year 2 $57,000 Complete this question by entering your answers in the tabs below. Net Cash Flows Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value of 1 at 12% 0.8930 07977 $ 86,000 57000 Year 3 Year 4 $78,000 $168,000 Answer is complete but not entirely correct. Present Value of Not Cash Flows Year 5 $52,000 76,786 45 4401

S Gomez is considering a $250,000 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) (Use appropriate factor(s) from the tables provided.) Net cash flows (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Year 1 $86,000 Year Year 1 Year? Year 2 $57,000 Complete this question by entering your answers in the tabs below. Net Cash Flows Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value of 1 at 12% 0.8930 07977 $ 86,000 57000 Year 3 Year 4 $78,000 $168,000 Answer is complete but not entirely correct. Present Value of Not Cash Flows Year 5 $52,000 76,786 45 4401

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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J&R Wealth is considering an investment with the following cash flow: EOY Cash Flow - $500,000 $92,500/year $50,000 1-10 10 If MARR is 12%, what is the ERR? Is this project acceptable?
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