Peng Company is considering an investment expected to generate an average net income after taxes of $2,300 for three years. The investment costs $59,700 and has an estimated $10,500 salvage value.

Peng Company is considering an investment expected to generate an average net income after taxes of $2,300 for three years. The investment costs $59,700 and has an estimated $10,500 salvage value. QS 25-8 Net present value LO P3 Assume Peng requires a 10% 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 flow Present Value of an Annuity of 1 Residual value Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Amount PV Factor = Present Value = $ 0 $ 10,500 0