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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 $50,
Peng Company is considering an investment expected to generate an average net income after taxes of $2, 900 for three years. The investment costs $50, 400 and has an estimated $8, 700 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. (FV of II, PV of $1. FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.)
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