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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 $59,100 and

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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 $59,100 and has an estimated $6,600 salvage value. Compute the accounting rate of return for this investment, assume the company uses straight-line depreciation Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 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.) Select Chart Amount * PV Factor Present Value Cash Flow Annual cash flow Residual value Not present value

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