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! m. Required information Part 2 of 2 Use the following information for the Quick Study below. [The following information applies to the questions displayed
! m. Required information Part 2 of 2 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 $2,500 for three years. The investment costs $51,000 and has an estimated $9,000 salvage value. 6 points QS 24-8 Net present value LO P3 X 01:19:00 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 $1) (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.) eBook PV Factor = Cash Flow Annual cash flow Amount X 16,500 x LLLLLLLLLL 9,000 $ Present Value $ 0 Ask Residual value $ = 0 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value 51,000
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