AccountingHow do I find the year 2-5 Present value of 1 at 9%? Gomez is considering a $195,000 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.)Year 3Year 5Year 1$80,000Year 2$58,000Year 4$149,000Net cash flows.$74,000$59,000(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 ARequired BCompute the net present value of this investment. (Round your answers to the nearest whole dollar.)PresentValue of 1Net CashFlowsYearPresent Valueof Net CashFlowsat 9%Year 1$0.9174 $ 73,392Year 2Year 3Year 4Year 5Totals$73,392Initial investmentNet present value$ 73,392wwwwwwwwRequired B >Proy80,00058,00074,000149,00059,000$ 420,000< Required A1 of 1HNoxt

(a) Year Cash Inflow (a) Present Value of 1 at 9% (b) Present Value of Net Cash Flows (a x b) 1…

Gomez is considering a $195,000 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.) Year 5 Net cash flows Year 1 $80,000 Year 2 $58,000 Year 3 Year 4 $74,000 $149,000 $59,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

Gomez is considering a $195,000 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.) Year 5 Net cash flows Year 1 $80,000 Year 2 $58,000 Year 3 Year 4 $74,000 $149,000 $59,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section10.A: Mutually Exclusive Investments Having Unequal Lives

Problem 4P

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