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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
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 $2,600 for three years. The investment costs $51,300 and has an estimated $6,900 salvage value Compute the accounting rate of return for this investment, assure the company uses straight-line depreciation Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of retum 0 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 $2,600 for three years. The investment costs $51,300 and has an estimated $6,900 salvage value. 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. Round your present value factor to 4 decimals.) Select Chart Amount PV Factor Present Value Cash Flow Annual cash flow Residual value S 0 0 Net present value
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