Present Value Saved Help Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) points Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The investment costs $45,000 and has an estimated $6,000 salvage value. QS 26-8 Net present value LO P3 Hint Print Assume Peng requires a 15% 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.) Amount X PV Factor = Present Value References Cash Flow Annual cash flow Select Chart Present Value of 1 Present Value of 1 Present value of cash inflows Residual value Immediate cash outflows Net present value Present Value Saved Help Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below.] Part 2 of 2 Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments. Investment Al $(200,000) Initial investment Expected net cash flows in: points 100,000 90,000 75,000 QS 26-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $20,000. Compute the investment's net present value. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Print References Present Value Year 1 Year 2 Year 3 Cash Flow $ 100,000 90,000 Present Value of 1 at 12% 0.8929 0.7972 0.7118 $ 89.290 71.748 Totals $ 190,000 161.038 Amount invested Net present value 200.000 (38,962) Present Value Saved Help The following information applies to the questions displayed below) A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.60 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years. The investment has zero salvage value. Part 1 of 2 QS 26-15 Net present value LO P3 points The company requires an 8% return on its investments. eBook 1-a. Compute the net present value of this investment (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted? Print Complete this question by entering your answers in the tabs below. References Required 1A Required 1B Compute the net present value of this investment. Chart Values are Based on: Amount x PV Factor - Present Value Cash Flow Annual cash flow Select Chart Present Value of an Annuity of 1 Immediate cash outflows Net present value
