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Peng Company is considering an investment expected to generate an average net income after taxes of $2,500 for three years. The investment costs $45,600 and

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Peng Company is considering an investment expected to generate an average net income after taxes of $2,500 for three years. The investment costs $45,600 and has an estimated $6,600 salvage value. 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 EVA of S1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Select Chart Amount * PV Factor - Present Value Cash Flow Annual cash fow Residual value Net present value

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