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 $3,100 for three years. The investment costs $59,100 and has an estimated $10,500 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.) Cash Flow Amount PV Factor = Select Chart Present Value of an Annuity of 1 Present Value of 1 Annual cash flow Residual value Present Value $ 0 Net present value Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $290,000 and have a useful life of four years. The system yields an incremental after-tax income of $83,653 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $190,000, has a $15,000 salvage value, is expected to last eight years, and will generate an after-tax income of $46,000 per year after straight-line depreciation. Answer is complete but not entirely correct. Choose Numerator: = Cost of investment $ Payback Period Choose Denominator: Annual net cash flow = 290,000 S 130,153 X = 190,000 S 67,875 = Payback Period Payback period 2.23 years 2.80 years a. b $