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PLEASE HELP!! Required information [The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net

PLEASE HELP!!

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Required information [The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $2,900 for three years. The investment costs $49,200 and has an estimated $9,900 salvage value. 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. Round your present value factor to 4 decimals.) TABLE B.1* Present Value of 1 p=1/(1+i)n *Used to compute the present value of a known future amount. For example: How much would you noed to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today? Using the factors of n=12 and i=5% ( 12 semiannual periods and a semiannual rate of 5% ), the factor is 0.5568 . You would need to irvest $2,784 today ( $5,0000.5568 ). TABLE B. 2+ Firture Value of 1 f=(1+i)n usea to compute the ruture value or a known present amount. ror exampie: w nat is the accumuarea varue or $3,wu investea toaly at or compounoea quarteny ror 2 years : usang the factors of n=20 and i=2% ( 20 quarterly periods and a quarterly interest rase of 2%, the factor is 1.4859 . The accumulated value is $4,457.70 ( $3,0001.4859). p=[1(1+i)n1]/i TABLE B. 3t Present Value of an Annuity of 1 tUsed to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9% For (n=10,i=9%), the PV factor is 6.4177.$2,000 per year for 10 years is the equivalent of $12,835 today ( $2,0006.4177) f=[(1+i)n1]/i TABLE B.4 SUsed to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of $4,000 per yeur for 6 years assuming an annual interest rate of 8%? For (n=6,i=8% ), the FV factor is 7.3359 . $4,000 per year for 6 years accumulates to $29,343.60($4,0007.3359)

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