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Required information The following information applies to the questions displayed below.J Peng Company is considering an investment expected to generate an average net income after
Required information The following information applies to the questions displayed below.J Peng Company is considering an investment expected to generate an average net income after taxes of $2,200 for three years. The investment costs $54,000 and has an estimated $8,700 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.) Cash Flow Annual cash flow Present Value of 1 Residual value Present Value of an Annuity of 1 Select Chart Amount PV FactorPresent Value Immediate cash outflows Present value of cash inflows Net present value
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