1a.

1b.

! Required information (The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $56,700 and has an estimated $9,600 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. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Select Chart Amount PV Factor Present Value Cash Flow Annual cash flow Residual value = $ 0 = 0 Net present value Required information [The following information applies to the questions displayed below. A company is considering investing in a new machine that requires a cash payment of $38,188 today. The machine will generate annual cash flows of $16,725 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount Invested / Annual Net Cash Flow = Present Value Factor / Internal Rate of Return %