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CH24 Required information The following information applies to the questions displayed below) Peng Company is considering an investment expected to generate an average net income

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CH24 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 $2,000 for three years. The investment costs $50700 and has an estimated $6.900 salvage value. Part 2 of 2 Assume Peng requires a 15% return on its investments Compute the net present value of this investment. Assume the company uses straight line depreciation (PV of 51, FV of $1. PVA of S1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Amount x PV Factor - Present Value Cash Flow Annual cash flow Residus value Select Chant Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value

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