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2 QS 26-14 (Algo) Net present value of an annuity LO P3 3.33 Pena Company is considering an investment of $28,115 that provides net
2 QS 26-14 (Algo) Net present value of an annuity LO P3 3.33 Pena Company is considering an investment of $28,115 that provides net cash flows of $8,300 annually for four years. Check points eBook (a) If Pena Company requires a 6% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Hint Required A Required B Print What is the net present value of this Investment? Net Cash Flows References Years 1-4 Net present value PV Factor = = Present Value of Net Cash Flows < Required A Required B >
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