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! Required information [The following information applies to the questions displayed below.) Peng Company is considering an investment expected to generate an average net income
! 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 $3,500 for three years. The investment costs $46,200 and has an estimated $9,900 salvage value. 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.) Select Chart Amount PV Factor Present Value Cash Flow Annual cash flow Residual value = $ 0 = 0 Net present value 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 $3,500 for three years. The investment costs $46,200 and has an estimated $9,900 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Answer is not complete. Accounting Rate of Return Choose Denominator: Annual average investment Choose Numerator: Annual after-tax net income 1 1 Accounting Rate of Return Accounting rate of return 0
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