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Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. The investment costs $54,300 and

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Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. The investment costs $54,300 and has an estimated $7,200 salvage value. QS 25-8 Net present value LO P3 Assume Peng requires a 5% 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.) Select Chart x PV Factor= Present Value Cash Flow Amount Annual cash flowPresent Value of an Annuity of $ C Residual value Present Value of 1 0 Present value of cash inflows Immediate cash outflows Net present value

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