#12

Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. The investment costs $51,600 and has an estimated $10,800 salvage value.

Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation

Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value