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6 Part 2 of 2 Required information (The following information applies to the questions displayed below.) Peng Company is considering an investment expected to generate

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6 Part 2 of 2 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 $2,600 for three years. The investment costs $58,200 and has an estimated $8,100 salvage value. 0.9 points 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 51) (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.) Book Select Chart Amount x PV Factor Present Value Cash Flow Annual cash flow Residual value Nel present value Saved 7. If Quail Company invests $50,000 today, it can expect to receive $13,800 at the end of each year for the next seven years, plus an extra $6,900 at the end of the seventh year. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 12% return on investments? 0.9 points Chart Values are Based on Book % Cash Flow PA Select Chart Amount PV Factor Present Value fo Annual cash flow Motional show Not present value

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