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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 $1,950 for three years. The investment costs $45,000 and has an estimated $6.000 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 S1, 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.) eBook Select Chart Amount * PV Factor Present Value Hint Cash Flow Annual cash flow Residual value Print Net present value References

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