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Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. The investment costs $45,900 and

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Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. The investment costs $45,900 and has an estimated $8,400 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 FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Cash Flow Select Chart Annual cash Present Value of an Annuity bow of 1 Residual value present Value of 1 Amount * PV Factor - Present Value $ 2.900 $ 0 $ 8.400 x 0 Net present value

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