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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 after

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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 after taxes of $2,000 for three years. The investment costs $52,800 and has an estimated $8,400 salvage value. Compute the accounting rate of return for this investment, assume the company uses straight-line depreciation Accounting Rate of Return Choose Choose Numerator: Accounting Rate of Denominator: Return Accounting rate of retum Assume Peng requires a 10% 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.) -Amount PV Factor Present Value Cash Flow Select Chart Annual cash flow Residual value Net present value

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