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Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $51,600 and
Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $51,600 and has an estimated $11,700 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company 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. Round your present value factor to 4 decimals.) Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $51,600 and has an estimated $11,700 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation
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