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Peng Company is considering an investment expected to generate $2,800 for three years. The investment costs $49,800 and has an estimated $8,100 salvage value. Assume
Peng Company is considering an investment expected to generate $2,800 for three years. The investment costs $49,800 and has an estimated $8,100 salvage value. Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.) an average net income after taxes of Answer is complete but not entirely correct. PV Factor Present Cash Flow Select Chart Amount Value Present Value of an Annuity of $ 2,800 x $ 2.8323 (X Annual cash flow 7,930 = 1 $ Residual value Present Value of 1 8,100 0.6575 5,326 X Present value of cash inflows 13,256 $ (49,800) Immediate cash outflows $ (38,081) Net present value EA
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