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Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $56,400 and

Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $56,400 and has an estimated $7,500 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

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