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Peng Company is considering an investment expected to generate an average net income after taxes of Sl 850 for three years The investment costs
Peng Company is considering an investment expected to generate an average net income after taxes of Sl 850 for three years The investment costs S45,DIJO and has an estimated salvage value. Assume Peng requires a 15% return on its investments. Compute the net present value of this investment (ey/_Qf SI, PY-Qf_S-l, and (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Annual cash flow Residual value Present Value of an Annuity of 1 Present Value ot 1 Present value ot cash inflows Immediate cash outflows Net present value 14,950 6,000 ax +/_o.occl 22832 +1-0.0001 0.6575 34,134 28,079 (6,921 Peng Company is considering an investment expected to generate an average net income after taxes of Sl 850 for three years The investment costs S45,DIJO and has an estimated salvage value. Assume Peng requires a 15% return on its investments. Compute the net present value of this investment (ey/_Qf SI, PY-Qf_S-l, and (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Annual cash flow Residual value Present Value of an Annuity of 1 Present Value ot 1 Present value ot cash inflows Immediate cash outflows Net present value 14,950 6,000 ax +/_o.occl 22832 +1-0.0001 0.6575 34,134 28,079 (6,921
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