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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 $2,200 for three years. The investment costs $57,900 and has an estimated $11,700 salvage value. Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1. EV of $1. PVA of $1, and EVA 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.) Cash Flow Annual cash flow Residual value Select Chart Amount X PV Factor Present Value + Present Value of an Annuity of 1 x $ Present Value of 1 $ 11.700 x Present value of cash inflows Immediate cash outflows Net present value
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