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can you please check this, make sure it is right. Required information The following information applies to the questions displayed below) Peng Company is considering
can you please check this, make sure it is right.
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 $2,500 for three years. The investment costs $59,900 and has an estimated $6,300 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 S1.EV Of S1. PVA of $1. and EVA LS1) (Use oppropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Amount x PV Factor $20.100 248681 $ 6,300 x 07513 Cash Flow Select Chart Annual cash flow Present Value of an Annuity of 1 Residual value Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Present Value $ 49.985 4.733 $ 54.718 (59.100) $ (4398) Step by Step Solution
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