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3 Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below) Peng Company is considering

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3 Required information Use the following information for the Quick Study below. 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 $2,400 for three years. The investment costs $55,800 and has an estimated $11.400 salvage value. Part 1 of 2 14.28 Dos QS 24.7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment assume the company uses straight-line depreciation Accounting Rate of Return Chose Denominator Choose Numerator Accounting Rate of Return Accounting rate of retum 4 Required information Use the following Information for the Quick Study below. The following information applies to the questions displayed below) Part 2 of 2 Peng Company is considering an investment expected to generate an average net income after taxes of $2.400 for three years. The investment costs $55,800 and has an estimated $11.400 salvage value. 1428 points QS 24-8 Net present value LO P3 Assume Peng requires a 10% return on its investments Compute the net present value of this investment. Assume the company uses straighuine depreciation (py of S1 FV of $1. PVA of SL and FVA of $13 . (Use appropriate factors) 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 fow Residual value Nett value

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