Peng Company is considering an investment expected to generate an average net income after taxes of $1,900 for three years. The investment costs $51,600 and has an estimated $10,800 salvage value.

Assume Peng requires a 15% 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

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Amount PV Factor = Present Value Cash Flow Annual cash flow Residual value Il $ 0 Il 0 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value